Meet Mr Hiroshi, who makes $600k a year and is much farther from financial freedom than you and me.
Mr Hiroshi lives in Tokyo, and is currently married with two kids. When Lehman failed, he was one of the the employees who lost his job. He made $600k a year, but with Lehman stock being worthless and his high expenses, he wasn’t as wealthy as you might think.
You see, our new friend is living the high life. His apartment is in the heart of Tokyo and cost $27,000 a month. His two kids are both in private school and tuition is also sky high. He was making lots of money alright, but he wasn’t really saving much either.
It took him about a year to find another job, which wasn’t too bad given that many of his former colleagues are still unemployed. The new job will utilize many of the skills he’s learned over the years, and the salary is comparable to what he was making before. Problem? The new firm needs him to relocate to Hong Kong, which is at least a three hour plane ride away, not to mention that it’s a different country speaking a foreign language.
He didn’t feel like he had a choice, so he took the offer and is currently contemplating about uprooting his family to a new country, where they have to learn a new language, make new friends and readjust.
The Choice is Yours
Given the state of the economy, many of us may feel like making more money is in the distant future. But eventually, the main street recession will be over. Eventually, the economy will pick up and eventually, the raises and bonuses will be back.
Are you going to inflate your lifestyle in lockstep with your income when the time comes? It’s up to you of course, and only you can decide.
Those who have embraced frugal living know that:
- Frugality enables you to rely less on products and more on living a loving life.
- Frugality enables you to say no to a job that asks you to severely affect your kids’ childhood.
- Frugality enables you to be brave enough to take the that opportunity to do what you love. For some of the luckier ones, the passion may turn into a very profitable venture. Do what you love and make a boatload of money doing it. Now that’s living.
The new year is coming. While you are thinking about your goals, why not add frugal living in there too.