How to Live Below Your Means

Two Parts:Calculating How Much You Should SpendMaking Changes to Your Spending

Instead of living a large life of spending lots of money (but not necessarily living the happiest life), try living below your means and saving rather than spending, and valuing everything and everyone around you. Besides, splurging has no end to it if one starts it. Life need not be planned from start to end but one has to give a thought on how to have a steady present and save for a future sans worries.

Part 1
Calculating How Much You Should Spend

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    Calculate your monthly disposable income. This is how much you make after taxes and necessary charges. Be completely honest about how much you earn. This doesn't include food, gasoline, or any needed toiletries. Keep everything other than mandated charges separate from the ones you may deem 'necessary'.
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    See how much you spend. For a month, try tracking everything you spend. Food, rent or mortgage, loan repayments, gasoline, power bills, rates or taxes and everything else you purchase needs to be tracked for an entire month. Be exact- Don't fake it or lie about how much you spend and don't forget to track and 'estimate'.
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    Decide on how much you want to save per-month. Try to keep it at around $200 or the equivalent in your currency at the very least and remember - Every penny counts. These can be saved for the future, or the big expenses like family travels. If it's not a realistic amount, save more or less depending on how the budget is working for you.

Part 2
Making Changes to Your Spending

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    Figure out what your idea of rich is. Instead of thinking rich is living in a huge house with a great car, consider it to be satisfying all your values. Being rich could be considered living around the people you want to, as well as being able to satisfy your needs and help them with their needs. Somehow helping someone with their needs brings a certain satisfaction which helps in sustaining and continuing to save. Don't look up to the people who are wildly wealthy and flaunt their wealth. Instead be satisfied with what's feasible to get.
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    Avoid impulse buys. Take some time to think about what you need to buy and what you don't. Decide what's important to you and weigh the options. There's no shame in finding a bargain.
    • Answer these questions. Do those who spend a lot look like they spend so much? How well spent do they look as compared to you? Can you manage buying reasonably priced products and feel proud about it? If you find favorable answers, you would have known by now that you could make a living by modest means. Such discreet actions only showcases your individual quality to control temptations and not have any complexes.
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    Manage your time. Do tasks that give you just as much investment as you put into it. If you enjoy something and get appreciation out of it, consider that to be a reward and decide if it's worth your time. If you end up with extra time, fill it with something rewarding and fun.
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    Skip high end retail. You don't need malls and expensive stores in order to get high end things. What you would buy at stores, try going to consignment stores or finding it cheaper online.
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    Appreciate your thoughtfulness. See the results and if you see that you have saved feasibly well or above your expectations then you must feel proud of yourself. Not a big amount but with a small portion of your each month's saving, you can give yourself a treat of what you like. It could be a dessert, a garment, or anything that would make you feel better. Remember, 'All work and no play makes Jack a dull boy' hence you must give yourself opportunity to break free so you feel excited to start again.

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Categories: Buying Wisely