I’ve often wondered what life would be like if we spent money like we had no worries. Sure, it might be fun for a while, but spending money like that would end soon for many of us who aren’t buried in Benjamins. To gain financial freedom we must not only be frugal about how we spend money, but also earn as much as we can. The formula for financial freedom is simple: spend less than you make. If you stick to that strategy over time and have an increasing difference between your income and expenses, then you can achieve more of the goals that matter to you.
I’ve written before about What the Government Teaches us About Living Without a Budget. What I want to look at today is what would happen to us if we were to spend money like the government. As opposed to boring you with long prose, I’ve decided to use a handy dandy infograph from Visual.ly. If you’ve not checked them out, then I highly recommend them. Their service is entirely free and they have a wealth of infographs available. I will also add that I have not been compensated by them, but am simply directing you to them as a helpful service.
Seeing things like this in plain numbers helps make it more concrete for me. Do you spend money like the government? If not, what are some of the benefits of not doing so?