How to live below your means of standard?
Have you ever heard the ‘money doesn’t grow on tress lecture’ by your parents?
You probably weren’t at an age where you could register all of that in your head at the time, but as you’re growing up you’ve probably started realizing the value and power money hold. Most of us are average people working average jobs and we live our lives trying to make the best out of what we have. Living on a budget is important because as much as we’d like to live carefreely, our futures are ticking time bombs. Money is very powerful and very influential and if we aren’t careful, we are going to be puppets to our immediate desires and whims. Living below your means does not equate to living in poverty, rather it is to teach us how to control our greed and focus on living a non-materialistic life. 22 Best Money Making Apps fast
// Here is a list of things you could do to live below your means, but enjoying yourself at the same time.
- Budget | live below your means
A budget is a fixed amount that you put aside for a month or a year and ensure that all your basic needs and necessities fit within the fixed amount. It is a great way of saving money and making sure you don’t go broke towards the end of the financial year. You could divide your budget based on needs, wants, savings and debt repayments and assign an amount to the category and any other expense should be recorded as miscellaneous and accounted for.
- Maintaining healthy savings or fixed deposit account | live below your means
Whenever you find yourself with an excess amount that is excess from the planned amount it is highly recommended that you divert the amount into a savings account no matter how small because this accumulates over time and you will have a healthy amount with you in the future. You could also use this money in case of emergencies. Best Saving Strategy
- Savings or Fixed deposit account | live below your means
A fixed deposit account is an account where you deposit a figuratively large sum of money and the bank will pay us the interest of maintaining the amount. In most cases, banks may be generous and offer high-interest rates which are more than enough for a person to live off every month. This will ensure that your money stays in one place and you don’t spend it unnecessarily while paid to be doing so.
- Maintaining a single income | live below your means
Nuclear families usually have both the parental figures working different jobs. It creates for a much efficient household if the family lived off the income of one bread-winner and the latter’s money could be maintained as savings. A few budget adjustments could make this possible and it will also give the family a good lesson o how to save money. When both incomes come into play there is a chance that the families may not have an exact plan and the financial freedom is a bit too much which creates a disorganized household.
- Cutting off all unwanted expenses | live below your means
Make sure you are saving every single penny. We may not think about this much but cable tv has a lot of channels that we end of not watching and eventually paying for at the end of the month. Saving is not an easy task; it does take a lot of effort and mindfulness but soon we’ll be conditioned into it. Make sure you cut the fat, cancel uninteresting channels, if there is food at home, don’t be lazy and cook (channel your inner ratatouille), re-check all your bills and make sure you aren’t paying for anything that is of no use to you. This way you can enjoy the little things and treat yourself from time to time without worrying about your money. How to make money from Youtube?
- Second hand maybe your golden egg | live below your means
If you are at the beginning stages of settling into life, then consider cutting back on luxury and focusing on the accumulation. It does seem exciting to land a job and then running to your nearest car dealership to buy a car on interest, but pause for a moment and think, wouldn’t it be better if I saved money and considered buying a car later on after I am a lot more financially secure? You want to cut down on interest and transport charges, set the money aside and buy a second-hand car. There are plenty of good condition cars out there, you could easily settle for one temporarily, so is the case with most things, settle for less in the beginning so you can gain more in the end.
These are a few ways you can live below your means responsibly. Comfort is important, but so is financial security during these trying times. Be financially responsible to make your life much easier.