21 Mar Tips for Living Beneath Your Means
In today’s gotta-have-it-right-now society, many struggle to live beneath their means, or create a lifestyle they can afford with money left over. Because this high-pressure task is not an easy one to maintain, it is essential to have the vigilance and determination to save your money before it runs out for the month. By following these 4 tips, you can learn how to be frugal, living beneath your means in no time.
1. Keep track of all of your expenses every month.
It is very important to track every amount of money spent, whether it is cash, debit, or credit, for the 30 straight days of the month. You should keep an eye on the amount spent on different areas listed in your budget, especially at the end of every week. Although it seems like a very tedious responsibility, you will be glad you sorted your transactions at the end of the month. It may even be quite astonishing to see how much of your budget you consume in those specific categories.
2. Adhere to a realistic budget.
Because you want to know exactly how much you are spending every month, it is important to keep and adhere to a clear and honest budget. Your budget should include a list of your fixed expenses such as utilities and rent with the exact amount. This budget should also contain a list of your flexible expenses being gas, food, and entertainment money. Be sure to incorporate every flexible category you spend money in. Finally, write down how much you want to spend in each of those instead of how much you currently spend. Keeping this realistic budget without rounding up will ultimately help you spend less and save more.
3. Restrict any severe credit card spending.
Having a credit card(s) can be very beneficial in certain situations. However, the unreal money you are spending without discipline can really affect you in the long run, leaving you in deep debt unable to pay a monthly payment. Therefore, in order to learn the real value of money, taking out and paying in cash will make you make you become so much more attentive. This will undoubtedly make you follow your budget and question your purchases, causing you to be smart and save up.
4. Don’t forget to reward yourself occasionally.
Living beneath your means does not mean being penny-pincher. It is always a good idea to reward yourself once in awhile. This will allow you to enjoy your leisures as well as keep yourself sane. Everyone deserves an occasional prize for their financial efforts, so take advantage of those times where you want to splurge a little. Evidently, it is beneficial to reward yourself within your budget.
Living beneath your means is simply all about figuring out how much you need to save, buying what you need, and spending what you can- according to your gross income and budget. It will assist you to self-talk yourself out of impulsive buys or mindless shopping. More importantly, living below your means will lessen unnecessary stress, create some peace of mind, and bring gradual wealth.