Living Well Within Your Means By Saving Money
“Living within your means” simply means that what you spend should be less than or equal to what you earn and start saving money. The prevalent culture today makes us believe that we need more in order to have a better life. And we are provided with the tools to get what we want – credit cards and bank loans, using up emergency funds – right there for us to use.
The thing is, living on debt is just not sustainable. Reckless spending habits have consequences, and when we finally reach that point of no return, we will be forced to take extreme steps to get yourself out of trouble.
Rather than going down that road, live within your means.
Living within your means is not that hard. And neither does it means that you cannot live well. It just requires a change of attitude and little bit of self-discipline.
Here are a few tips and tricks that can help us live well – and live within our means:
- Know exactly how much you earn
This seems like a no-brainier, but a lot of times, we have a general idea of how much we earn, not an exact figure. Knowing your income will help you plan your budget and also figure out how much you can save.
- Make a budget – and stick to it!
Learn to make a budget for your expenses. And then stick to it. Budgeting is one of the biggest lessons we can ever learn to be able to live within our means. The benefits you will derive from controlling your spending – removing your debt, having a little extra money tucked away, knowing that you have a more stable and comfortable future – is really worth the effort.
And you will also build a legacy for your children. By inculcating the habit of sensible spending, you are taking care of their families’ futures too.
- Find ways to supplement your income
It is not always possible for you to find an alternate source of income. However, you can always give your income a little boost. The best way to do so is to maximize your tax refund. According to the IRS, about 75% of tax payers were awarded an average of $2,800 in refunds in 2016. Here are some tips on how you can maximize your tax refunds.
- Stop depending on credit cards – even for the big buys
The biggest problem our world faces now is this huge dependence on credit cards. Reducing our dependence on credit cards means that we will have lower debt and less stress.
If you are planning a big buy, like a new TV or a bed, save up for it. Don’t use the credit card. Saving up is interest free – plus stores tend to give huge discounts for cash down payments. Credit cards have huge interest charges, meaning you will end up paying much more.
- Differentiate between a need and a want
You need to differentiate between what you need and what you want. This is critical. A need is something essential to living/survival – you need a roof over your head, you need healthy food, etc. A want is something you desire but can do without, like a new PlayStation, or a 56-inch flat screen HD TV.
- Change your attitude
A change in attitude towards what you consider living well will really impact your ability to live within your means. Trying to keep up with the Joneses, or wanting what others have is a perfect way to live outside your means.
Be grateful for what you have. Enjoy what you have and see the beauty in it.