Is it really about not spending the money you make?

[Ryan Pozzi]

Hey BP!  I'm still quite new around here so I know I'm risking outing myself as someone who "doesn't get it yet" by asking this, but I've been consuming everything I can to try to educate myself - podcasts, books, forum conversations.  (I have yet to get out to a local meet-up, but  I'll get there.)  I think of this as part of what it takes for a new investor like me to get up to speed.

One thing that keeps coming up - particularly as I read my way through some of the titles folks on the podcast identify as their favorite business books - is the idea of drastically minimizing expenses.  I guess the volume and frequency of the "you must live an exceptionally modest lifestyle" message has surprised me and I'm curious if you have tips for how to accomplish the spirit of what they're saying without drifting into self-deprivation.  Live below you means, sure, but some of this advice...I dunno.

Of course I get that living on $20,000 a year, for example, would provide a big boost to my wealth building but I've lived on that income before, as I'm sure many of us have, and I don't recall it being very pleasant.  I don't need to splash money all over the place, but what's the point of using real estate as a tool to build passive income and increase my long-term wealth if it doesn't also improve my standard of living as I go along?  Sure my retirement would be GREAT if I save 50% of my income, but...  What am I missing here, BP?