OK I hate this. It teaches us nothing. Take, “live within your means”. That can also be restated as spend all you have. A better way to think of it is, what do I really need? And is there money leaking out somewhere, spending I did not intent.
If you invest, invest in something that grows and does not take away 1% in fees. 1% is about 10% to 33% of the growth. That is if you think your investment is growing at 3% to 10% a year. And normally that 1% is just the fee at the top. Underneath are other fees. So if your money handler takes 1% and he puts you in a fund like a mutual fund or bond fund, they are taking another 1%. So now you are giving away 20% to 66% of your growth.
Talk yourself out of wanting to acquire more stuff. Its just more hassle. And don’t buy to impress. Your friends don’t really care too much. Stay simple. And hang with people who are simple and real. They are normally nicer to be around anyway.
Don’t buy new as long as the old still works. Remember you are paying the government every time you upgrade. If you can put off a new car or TV another year, the new ones are even better. And the government loses some tax money. A win win.
I think what you are seeing is bad editing.
That section actually begins, "To really live at a level you can afford, you have to modify your lifestyle slightly and live below your means. "
Kids today have very little, if any, understanding of history. They have no concept of just how bad things can get and how long they can stay that way. They have been raised in one of the most affluent societies that ever existed but are taught that things are terrible and that we must rely on "hope and change" to build a future, instead of "work and responsibility".
Also, I would never again buy a new car. My last purchase was a two year old car with 30k miles on it which cost about 60% of the new price.