Having more assets gives your buffer to spend more, but not necessarily splurge. You will feel relaxed when sometimes big spending is required. The best is let your assets grow but keep your spending low and consistent. That's when you can really achieve financial freedom - defined as doing whatever you choose and being able to support your lifestyle.
Spending vs. Assets: Are You a 1:100 or 1:1000 Type?
There seems to be a proportional relationship between people's spending levels and their assets.
As someone pointed out, it’s possible that our spending capacity and cash reserves are in a 1:100 ratio.
For example, if you have $100,000 in savings, you might not hesitate to spend $1,000 on something; and if you have $1,000,000 in savings, you might not hesitate to spend $10,000.
However, some people say that when it comes to regular daily expenses, a 1:1000 ratio better reflects their spending habits.
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What's the ratio between your spending and assets?
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