3 Quick Tips for Living Within Your Means
Hello Money Masters!
By definition, “living within your means” is simply this: don’t spend more than you earn. Think for a second about what this means for you, for your household. I found a staggering statistic on Forbes.com. It stated that, according to the Federal Reserve Bank of New York, U.S. household debt, which includes mortgages and high-interest credit card debt, reached a record high of $13.2 trillion last year!
So, I’ve put together 3 tips to help keep YOU living within your means:
Tip #1: Focus on your financial needs.
Budgeting is important, of course, but there’s more to it. You need to prioritize your finances regarding what is most important in your life/family/home. For instance, private school or a college fund for your children may be at the top of your list. Another example could be spending more on a safer vehicle. You get the idea, right? Of course you do!
Remember, there may be some items on your list that get replaced by others of higher priority, so be prepared to make some sacrifices!
Tip #2: Use your will power.
Avoid frivolous spending! This means making a purchase when you had no intention of doing so in the first place. What does that tell you? That you didn’t NEED that item. Resist the urge to take advantage of a sale or coupon just because it’s there and it might be a good deal.
At the risk of sounding like a little league coach, let me just say “Come on, y’all, you can do it!” 😉
Tip #3: Get creative.
Find ways to make it less easy to spend and easier to keep (and even add) money in your accounts. You can do this by:
Reducing use of credit cards (remember that annoying interest?)
Finding a rewards program that offers you cash back…yes, they do exist!
Check out some of the “survey apps” in your free time. Even if you only rack up $5 worth of points or credits it’s better than nothing! It could end up being a lucrative use of your time during a morning commute.
There’s a quote by Calvin Coolidge which comes to mind when thinking about how to live within your means.
“There is no dignity quite so impressive, and no one independence quite so important, as living within your means.”