How to Successfully Live Below Your Mean
The Secret of Successfully Live Below Your Mean
If you know that living below your means is what you need to do to reach your financial goals, but you don’t know where to start, this guide will give you ideas on how to achieve this. Let’s get started!
1. Know Your Monthly Income
When you determine your monthly income, this will become your spending limit. The goal here is to not pay more than this monthly limit, but also to allocate all the money you have coming in every month to either spending or saving.
2. Track Your Spending
There are some smart phone apps that will automatically do this for you, or you can track your spending yourself manually. This will ensure that you do not spend more than your monthly income allows and can start to cut down on some unnecessary costs.
3. Cut Down on Unnecessary Costs
A $5 coffee here, a $15 brunch there. These costs can all add up quickly throughout the month if you aren’t careful. This doesn’t mean you can’t ever indulge, but your daily Starbucks habit probably isn’t helping your financial situation.
4. Buy Second-Hand
Instead of running out and buying something brand new, try finding it used on websites like eBay, Poshmark, or even at garage sales. There are tons of Craigslist alternatives out there to help you buy and sell great used items, saving you money.
5.Be Careful With Credit Cards
Using credit cards to cover bills, pay for rent, or to buy other unnecessary items is one way to keep you from reaching your financial goals. This will also make it nearly impossible to live below your means. This is because most people end up spending more than they normally would when using credit cards.
6. Build up Your Savings
Having an emergency fund or other savings accounts to rely on when something goes wrong is very important when living below your means. Building up your savings can also help you to avoid using credit cards for financial emergencies.
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