"I became rich when I earned more than I spent" are words spoken by a rich man with 0 self awareness. I can tell you the second my life became infinitely less stressful: when I paid off my student loans.
I too spent almost no money, went on almost no trips, and lived way, way below my means to make it happen in my 20s. It turns out as my income has increased my happiness has increased - and I'd agree with all the studies of once you cross a certain threshold in the 6-figure range that more money means "less". Generally it just means: I have nicer versions of the same things.
All that is to say: I sure as hell wasn't "rich" when I was making more than I owed each month, not even close. And I don't believe for a SECOND Derek would be happy going back to living in a flat with 3 other people, eating peanut butter sandwiches 3 days a week but "making more than he spends", which is what he implies.
Derek: there are people out there who are in their 50s who would still have to live with 3 other people and eat peanut butter sandwiches 5 days a week to earn more than they spend. THAT'S THE POINT. Maybe if I make $90k/month some day I'll also be blind to the reality of the common man, but I can still see it from this little perch I'm sitting on at the bottom of the mountain.
I think it is noble to preach being rich in the moment. I think for Derek quitting his job in his 20s to play music full time was for sure a mark of affluence in his social circle at the time.
There should be some qualification, like "once you earn above $100,000, then you become rich when you earn more than you spend". Even that wouldn't be quite right for many expensive cities.
I too spent almost no money, went on almost no trips, and lived way, way below my means to make it happen in my 20s. It turns out as my income has increased my happiness has increased - and I'd agree with all the studies of once you cross a certain threshold in the 6-figure range that more money means "less". Generally it just means: I have nicer versions of the same things.
All that is to say: I sure as hell wasn't "rich" when I was making more than I owed each month, not even close. And I don't believe for a SECOND Derek would be happy going back to living in a flat with 3 other people, eating peanut butter sandwiches 3 days a week but "making more than he spends", which is what he implies.
Derek: there are people out there who are in their 50s who would still have to live with 3 other people and eat peanut butter sandwiches 5 days a week to earn more than they spend. THAT'S THE POINT. Maybe if I make $90k/month some day I'll also be blind to the reality of the common man, but I can still see it from this little perch I'm sitting on at the bottom of the mountain.