If you make 1 million dollars a year and spend money on leasing new cars, buying a 9 million dollar house, new clothes, vacations, and so on. What do you really have to show for? You would have a house that you cannot afford, a car you do not even own, and clothes and vacations that if sold would get you pennies on the dollar.
Now if on the other hand you make 50K a year, you bought a used 1997 Mercury Tracer(great buy if you ask me), a small house that is undervalued and really just need cosmetic upgrades, and you prefer buying clothes at thrift stores or only at discount stores like Ross or Marshall’s, then I believe you are better off just from those few details of spending vs saving.
A book comes to mind that really shows what keeping up with the Jones’ gets you. It is called The Millionaire Next Door. If you have not read it, get it from the library and read it. The principles behind there research are that millionaires don’t spend millions in fact it is quite the opposite. They buy used cars, save money, and make sound investments.
So right now I am making very little money with my job, but I am also spending so little that I am doing a better job of paying bills and focusing on getting out of debt. Maybe you should to.