As we grow up and learn about money, one general concept seems to be pushed on us – you should learn to live below your means. What does this concept really mean? Why and how should you begin to live below your means?
To live below your means is not the same for everyone, but generally speaking, it means living as though you have less even when you have more. For example, if you have 50 bucks left over after doing your budget, you save the 50 and pretend it was not left over at all. While some like to spend what they have and embrace the “enjoy it while you have it” type of attitude, there are strong reasons to not do so.
5 Reasons To Live Below Your Means
Emergencies Will Lose Their Sting
No matter how hard we prepare or how careful we are, emergencies are going to come up. If things go true to form for most people, those emergencies will crop up at the worst possible times. If you like to be prepared and have things in order before they happen you probably will need to live below your means to create an emergency savings buffer. Once you get burned by an unexpected emergency that will become evident one way or another. You might as well do so ahead of time, right?
Your Stress Level Will Go Way Down
Worrying about money is not something that most people enjoy doing. If you have a tendency to worry about things, money will quickly become a top target for your mind to lock onto and worry. If you live below your means, you can generally bypass this horrible problem. Lower stress means also means better health and relationships.
You Will Have Room For The Things That Slide By
It is amazing how many things you stop doing when money gets tight. That trip across town to volunteer at the soup kitchen is not always possible when you are living week to week and you are out of gas money. Some of the things we love to do will slowly go away if we are not financially secure. Living below your means can keep that problem at bay.
You Will Become Empowered Financially
Having choices is a huge thing in life and financial choices, in particular, can give you a sense of confidence. Going into a bank and asking for a loan is not fun, and especially so when you know you will pay a high-interest rate. Instead, have that money socked away via living below your means and skip the interest altogether! Skip the credit card train and live with what you have.
You Will Be Heading Towards a Comfortable Future
Knowing that you are safe and sound and that you can take care of yourself is really the best you can hope for in life. We all fight for that financial security and we try to do our best. Every little thing we can do to improve our chances is a good thing.
For tips on getting control of your debt and learning more about living within or below your means, you may want to invest in the Dave Ramsey Total Budget Makeover book. This is a wonderful guide to help you truly understand your finances and how your choices impact the long-term picture of your financial freedom.
If you wonder why in financial circles the term life below your means has become so popular, this list is just the beginning. Changing your outlook on money can totally change you outlook on your finances and your long-term financial future.
More Frugal Living Tips:
- How To Create A Successful Budget
- 10 Ways To Save $500 This Month
- 10 Ways To Save On Car Insurance
- How To Manage Money When You're Broke