Let’s Talk… Living Within Your Means!

Let’s Talk… Living Within Your Means!

Being financially responsible is key to your financial life. One way to achieve this is “living within your means”, which means you are spending less money than you are taking in. Here are some ways to get started.

1. Know how much you make. This is the first step in understanding anything financial. With this information you can create a budget, set financial goals, and even start an emergency fund. Many of these things are overlooked, but are vital for the financial stability of a family. 
2. Stop trying to “keep up with the Joneses”. There was a saying growing up that said, “if it ain’t broke, don’t fix it”, and this holds true even today in our pursuit of living within our means. There’s no need for the “latest and greatest”, enjoy what you have now and take advantage of what works.
3. Save, Save, Save. This is so important. Stop relying on credit to get by. If you can’t afford that vacation or new car, hold off on it, save, and revisit the idea when you can afford it. Avoid these traps because they can lead you to a lifelong cycle of debt.
4. Separate your needs vs. wants. Needs are essential things that we require for life (food, housing, transportation), whilst wants are things we purchase for pleasure and fun (travel, entertainment, designer clothing). I’m not telling you to cut these out, enjoy yourself, but keep a sharp mind on how to separate these wants and needs. 

In the end, remember putting this into practice is easier said than done. It, however, is crucial to put these into effect, if you truly want to live within your means.