Measuring expenses against real income

All of our expenses should be evaluated in light of our real income.  A $30 restaurant meal can represent 4 or 5 hours of work while a new $20 000 car can represent 3 000 hours!

The parallel between work and savings is significant. Many people do not enjoy their jobs and make themselves sick instead of deciding to change employers. If these people had savings that amounted to at least one year's salary, it would certainly help them make their decision; they would have more freedom. Financial independence leads to peace of mind and less stress.

The essence of Dominguez' and Robin's Your Money or Your Life: don't spend more than you earn, calculate the value of the things you buy and think about whether or not you need them. Follow these guidelines and you will really begin to save money.

In light of the high bankruptcy rate in Canada, the difficult month-ends and other harrowing economic situations, one has to wonder about rampant consumption, personal finance management and opting for a simpler lifestyle and better quality of life. It isn't that difficult to make the leap.