How do you handle your everyday life? How do you suffice your salary or wage with your needs and wants? Is it enough to sustain your everyday living? These are some of the questions we thrown to our clients most of the time. Some say they just live within their means. Others opt to simply live below their means in order to suffice their everyday needs.
Meaning, living below your means let you cut your expenses. It is simply living in alternatives with the expectation of getting the same function of the product you bought. For example, the function of toothpaste is to promote oral hygiene. Instead of buying a product with a higher cost, choose to buy the product with much lesser cost.
For others do not control spending, they are drown to debt. They do not believe in delayed gratification. So, they are spending more compared with what they are bringing in. May we share some of the tips in living below your means.
Make and Keep a List. Keeping a list with you when you purchase best help you reduce or better still eliminate unnecessary expenses. Keeping a list of what you purchase and comparing it to your monthly income best help you track your expenditures. Because of tracking your expenses and income, it helps you see your net worth grow or drop. Basically, if your expenses are higher than your income, you ought to figure it out what to reduce or else eliminate.
Buy Things You Need. Again, there’s a big difference of need and want. If you can live without it, then it is a want. In contrast, if you cannot live without it, it is a need. So, ask yourself first before buying anything: Do I really need this? If you do, then buy it. If not sure, maybe you can always go back and buy it.
Use What You Have. Maximize all the resources you have. Instead of buying a new notebook, get all the unused pages of your old notebook and compile them. It sounds laborious but it costs you no penny at all. It just requires time to fix your unused pages of notebook and transform it into a new usable notebook.
Enjoy free or cheap stuff. Who can say you are cheap when you use cheap stuff? Many would tell such. At the end of the day, your stuff whether cheap or expensive, serves its purpose. For example, wearing a cheap or expensive jacket will keep your body warm. Does it serve its purpose to keep your body warm?
Cut up your credit cards. Credit cards make anyone drown in debt if not managed properly. Credit card is not bad if managed as it should be. If you use your credit card/s, make sure you have to pay on time to avoid any surcharges which sometimes higher than your credit line. Use your credit card/s only in times of emergency.
Downsize your expenditures. Consider your fixed expenses which have a huge amount in your budget and downsize them if possible. If you are paying for a car you cannot afford, you cannot live below your means.
Save a portion from your income. By simply constantly setting aside a portion from your income and saving them, helps you increase your financial security. Most Financial/Investment advisors say to save up at least 20% of your monthly income.
Simply cook your food. Preparing and cooking your own meal is not just healthier but can cut cost in buying cooked food or eating in restaurants for almost your meals. Also, cook from scratch. Learn how to creatively cook what is left from your previous meal. By doing these, you can save penny.
