It Is Not What You Earn, But What You Spend.

The phrase that is the title of this post was spoken recently. It was spoken in the context of  budgeting and spending your money on things you think you cannot afford:

"It is not what you earn, but what you spend."

This came in context when a friend of mine was inquiring about hiring a personal trainer for one month to jump start her new fitness regime.  She wanted to start a regular exercise program to avoid normal aches and pains. She felt that her left knee was hurting her because she was not using the equipment at the gym properly.

So, the trainer, after quoting his fee of $100 for 4 sessions and drafting a plan to continue her working out on her own, my friend said what most people say: I can't afford it right now, but I will get back to you.

His reply was that it is not what you earn, but what you spend. Meaning if she truly wanted to afford the 4 personal training sessions because it was important to her health then she ought not to spend so much in other areas. Ix-nay Starbucks?

This is truly an interesting concept as it can apply to estate planning as well. Sure, attorney fees are not easily affordable, but is estate planning one of things that should be accomplished by most individuals and families to prepare for the inevitable in life? I think so.