Money rules you need 3 - Live below your means

I started a series about some money rules we need, we may have known them before but it's best to keep us reminded about it so we don't lose sight of the most important things. The rules seem not so hard but at the same time aren't easy to follow but they are worth trying.

There are going to be four rules in total and I've been able to write on two rules already.
You can check out the Number one rule - Pay yourself first and Number two rule - Save for rainy days as I've written before.

The number three rule states that you:

Live below your means

Permit me to start the explanation with a story I feel would explain this rule very well.

So there was this guy who had nothing and when I say nothing, he had only his expired rented house and the clothes he was given by a friend of his... He was super broke but somehow he gets to eat a square of meal, I guess he was lucky to be in the neighbourhood he lived in.

He would tell stories of how rich he was before until he lost everything to high expenses, the funny thing about his story was that "he wasn't showing any form of regret that he spent the huge amount of money he claimed to had have before". Well, people prayed and hoped he made it again so he could care for himself.

And it happened, he got a huge deal with a company to design some stuffs for them... I really don't know what it was all about but we heard it was worth 25million deal. We were so happy for him.

To everyone's surprise, he moved out of the neighbourhood at night and went off to live in a hotel, bought a car and expensive wears and many other stuffs... Yes, he had the money but the expenses got too high than the money he had. It didn't take up to three month, we heard that he sold off the car to get some money to pay some of his bills.

The money from the car he sold, he spent it all up and we had not heard anything from him since then. I guess he's struggling somewhere to have a huge amount to spend again.

Living below your means doesn't mean you should live like a poor person when you have the money to stay comfortable but the story shows a perfect example of living above your means.

You earn a thousand dollars every month and your expenses shows that you spend a thousand and half dollar every month... That is way too high for your income, how do you invest that way for rainy days?

How do you live below your means?

Make a budget if you can, take notes of how you spend every penny after earning. No, you don't have to do this all the time... You get conscious enough with practice. So many do not know how they spent all their money, they just spend and regret later (Some don't though).

Unnecessary buying of things should be cut down to almost zero if possible. Funny enough, most of these unnecessary things we spend our money on are either not good for our health or we buy them to feel belong... This is wrong, you should learn to live comfortable in your own paradise.

It's not about earning so much so you can spend as you like, even billionaires go broke if they spend recklessly... Money vanishes if not put to work.

Don't let the lives of others deceive you, learn to live below your means and stay happy to watch your money grow.

Thanks for reading!!!

Posted Using LeoFinance ^Beta