“Where should we draw the line when it comes to resisting the excesses of consumerism and yet still living life in an industrialized modern world? Can we ever upgrade our car? Should we go on vacation?” – Joe

Being a minimalist is certainly about refusing the excess, and to a lesser extent refusing consumerism. But it is not about going without, or purposefully living poor. It’s just figuring out what you actually use and getting rid of everything else. Where we get ourselves into trouble is buying things we don’t need with money we do not have.

Being realistic and attempting to live within your means is what everyone should do, and what more of us need to do. However, there are situations when the use of credit is appropriate. As long as you have properly planned the use of the credit, it is within your means to repay the loan quickly, and the use of credit does not strap your budget or other long-range plans you may have.

Here is another example. An older vehicle can quickly become a money pit and can hurt your budget more than purchasing a newer vehicle on credit. I learned from personal experience with a BMW I used to own. I had the vehicle for years, but I insisted on keeping it past it’s reasonable life in an attempt to avoid taking out a loan. In the end I spent more on repairs than I would have on a brand new car. If the repair bills for old vehicles are large enough and in succession, it can wreak havoc on your emergency funds.

Sometimes taking a trip is needed to get out of a work or stress related rut. A short business trip may present the opportunity to enhance your knowledge or network with other people in a similar line of work, increasing you income down the road. A short-term debt may be appropriate if the long-term investment will help you later. Additionally, everyone needs some recreational off time, but it’s up to you to determine what is within your means.

The only thing I would say (after making every mistake in the book) is be as conservative with credit as possible. Otherwise it comes back and bites you square in the buttocks.