How to apply this philosophy in practice?
1. Change your Mindset: From "Can I afford the monthly payments?" to "Can I really afford this with the money I already have (or with the returns from my investments)?".
2. Invest first, spend later:** Prioritize allocating your income towards investments before spending on unnecessary things. The rule "pay yourself first" is key.
3. Define what "luxury" means to you:** It's not about living in absolute austerity, but enjoying wisely. What experience or item do you truly value and will bring you lasting joy?
4. Use debt wisely:** Not all debt is bad. A mortgage for an appreciating asset or a loan for a business is "good debt" because it is used to acquire an asset. "Bad debt" is used to acquire liabilities that depreciate (a new car, a television, vacations) and do not generate income.
5. Practice financial patience:** Delaying gratification is the greatest superpower in personal finance. Waiting and saving to buy something outright, after your investments have generated the money, is incredibly satisfying and liberating.
The phrase is a reminder to build the foundation (investments) before decorating the house (luxuries). It's about building freedom and options, not accumulating chains of monthly payments.
