Dec 25, 2024
Dave Bautista is among the few professional wrestlers who successfully transitioned to a career in Hollywood. Millions of fans followed his journey from the ring to the silver screen, yet they may be unaware of his struggles with money.
“I came out of wrestling, I literally lost everything. My house got foreclosed on,” he shared in an interview with YouTube’s School of Hard Knocks posted on Sept. 29.
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Bautista, who was known as “Batista” in WWE, credits fellow wrestler Mark “The Undertaker” Calaway with helping him realize one of the secrets to financial success is living below your means.
“[It was] the best advice that I ever got,” Bautista said. “I learned the hard way.”
Bautista now regularly appears in box-office hits and has earned millions of dollars as an entertainer. But you don’t need to be an ultra-high earner to see the wisdom in Calaway’s advice. Here’s how you can use this basic principle to boost your financial position.
Avoid or minimize credit
Any form of credit can allow you to spend beyond your means. American households collectively had $17.94 trillion in debt as of the third quarter of 2024, according to the Federal Reserve Bank of New York. That includes $1.17 trillion in credit card debt — a record high.
By avoiding or restricting debt you could take the first step toward living below your means and improving your financial position. Paying down debt — especially if it comes with a high interest rate — could put you on solid footing.
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Add a margin of safety to your budget
Sticking to a budget may seem like common sense, but so often this rule is broken. For instance, 51% of Americans confessed to overspending to impress someone else, according to a 2024 survey commissioned by LendingTree. Among those who overspent to show off, 56% admitted this impulse has driven them into debt.
Since it’s common for consumers to go over your budget, it can make sense to add a margin of safety. If you assume that all your expenses will be 10% to 15% higher, for example, you can limit the chances of overspending and relying on credit.
In cases where exceeding your budget is a necessity rather than a compulsion, it pays to have an emergency fund to fall back on. Stashing away three to six months’ worth of expenses can help you stay afloat if your life takes a sudden financial turn.
Prioritize needs over wants
Differentiating between what’s necessary and what’s simply tempting is a key part of living within your means.
“I know I can live more lavishly, more luxuriously,” Bautista said. “That money in the bank means more to me than something I don’t really need.”
By resisting indulgences, you could limit your chances of overspending and overborrowing, putting you on a clearer path to financial freedom.
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Vishesh Raisinghani is a financial journalist covering personal finance, investing and the global economy. He's also the founder of Sharpe Ascension Inc., a content marketing agency focused on investment firms. His work has appeared in Moneywise, Yahoo Finance!, Motley Fool, Seeking Alpha, Mergers & Acquisitions Magazine and Piggybank.
