Living below your means, what does it really mean?
As difficult as things are getting with the economic situation of things, it is necessary to cut down on expenses, to live a comfortable life. When talking about living within your means, it means spending less than you earn. This does not mean depriving yourself of the good things in life, it is more about smart pending and having sound saving decisions.
This means you get to choose a smaller type of car instead of going for an expensive one, making the decision to cook your food instead of eating out every day. The most important thing lies in acknowledging the fact that, your financial well-being is more satisfying and more important than living a luxury lifestyle. This doesn't mean you should not enjoy life at all, it rather means, that while you live you are also thinking about the future.
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When you live below your means, you will live a debt-free life and this makes you sleep better. Financial worries keep you up at night and could increase your blood pressure, but learning to live below your means will help you ave at a faster rate. When you earn a salary or get paid for service rendered, you can do whatever you please with the money earned, and you do not have anyone threatening to take over your house or car.
When you live below your means, you can save up for the things you need instead of running into debt, a very strong key to financial freedom is learning to live within your means.
The four points I will be mentioning below are actions that will help you not to live above your means;
Live on a budget and stop overspending: With gratitude to improved technology, spending can now be tracked with a budget calculator making the act of living on a budget even easier, this technology works better sometimes because as humans we may think we still have so much money in our bank account more than we do in real sense.
Keep your money in check by being smart: Being smart about your money means you are not buying what you cannot outrightly afford, this doesn't mean you shouldn't spend on those things that you need (that's been ridiculous).
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Aligning your purchase with your values and priorities will help you better, this approach will help you invest in items and experiences that will enhance your well-being and bring you joy. This approach helps you make sure that every purchase made aligns with your personal values and lifestyle goals.
Increase your income: While living below your means works very well, looking for ways to earn more money thereby increasing your income is the best bet. Look out for opportunities to boost your potential for earning, like the acquisition of a new skill, getting engaged in a side hustle, and improving the advancement of your career. Increasing your income will give you financial flexibility and improve the progress of your finances on a speedy level.
Continue to improve your knowledge: The world of finance is changing constantly, in fact, the world as a whole is drastically changing, and you need to stay informed when necessary. Continue to learn strategies about how to budget, save, and also investment opportunities that will help you grow and become better all the time.
Despite all these mentioned points, it remains clear that it isn't as easy as you have read especially when one is in debt already, and with the high spike in the prices of things, saving a third of your income may be impossible. The most important thing however is to make an effort to make thins things work, getting another debt with the one you already have may not be a smart option.
It may not be easy, but entails an intentional decision to start now and start immediately, stop living a lifestyle you cannot conveniently afford, stop eating more than you can afford as well, and make the choice to prepare your meals instead of visiting fancy restaurants all the time.
I hope you found this helpful, I will be back on your screens with more knowledgeable content, and I look forward to your comments.
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Posted Using InLeo Alpha