She Strengthens

Embracing Frugality: The Secret to Financial Success

Living Like a Student: A Recipe for Financial Freedom

When you think about your college days, what comes to mind? Cramped dorm rooms, shared bedrooms, and makeshift living arrangements? For many of us, those were the norm. But what if I told you that embracing those humble beginnings could be the key to financial success?

The College Mindset

As I navigate my college neighborhood, I’m reminded of the unconventional living arrangements that come with student life. From rundown houses to tiny dorm rooms, students have mastered the art of saving on housing expenses. And that’s precisely the mindset we need to adopt when it comes to our financial lives.

Remembering Our Roots

I often think back to my own college days, where I lived in a tiny dorm room with a stranger, then shared a windowless basement with four roommates. My wife’s experience wasn’t much different – she shared a bedroom with a roommate and later bought a house, renting out the other rooms to grad students. It may seem crazy in retrospect, but that’s exactly the point. We adapted to our circumstances, and that flexibility served us well.

Avoiding Lifestyle Inflation

Fast-forward to our post-grad lives, and it’s easy to get caught up in the allure of luxury apartments and fancy lifestyles. But remember, it doesn’t matter how much you make if it all goes out the door on rent. I’ve seen too many people forget that early on in their careers, convincing themselves they need the fancy apartment when they were doing just fine living like a student just a few years prior.

Choosing Our Path

Ultimately, we choose how we want to live. Take my own example – I opted for a “normal” apartment building instead of a luxury one, choosing to pay down my student debt over upgrading my lifestyle. That was a conscious decision, and one that has served me well. Even today, I rent out a room on Airbnb, sacrificing some privacy for financial gain. It’s a choice I make, and one that I’m comfortable with.

No Need to Upgrade Just Yet

So, what’s the takeaway? You don’t need to upgrade your life right away. Take some time early on in your career to maintain the status quo. Live like a student while you’re still used to it. I know a couple who’s doing everything right when it comes to their money – they’re physician assistants making close to $200k a year, but they’ve resisted the temptation of luxury living, opting for a humble one-bedroom apartment instead.

Financial Freedom Awaits

If you want to start yourself on the right financial footing, take a page from the college playbook. Find an affordable place to live, get a roommate if you need to, and remember how you lived during your college days. By embracing frugality and avoiding lifestyle inflation, you’ll be well on your way to financial freedom.