Living below your means.

Are you in that situation where your income is just enough to support your daily expenses? Making it so difficult to save, and even forces you to be in debt at times when some problems arises. You know exactly that your trying to live just within your means, but still this kind of situation happens. Maybe its time for you to adjust that "belt a little tighter" and actually live below your means.

We always hear the advice to live within your means, but to make significant improvements in your financial situation it maybe better to live below your means.

Living within your means is understanding what to spend for but in a society where the media, government and technological advancements teaching us to spend more makes it very difficult to do so. We tend to spend more and more money instead of learning how to save.

One way to find out if you’re living above your means is too check your savings account balance. Is it somehow going up every month or your always below its maintaining balance? Or do you find yourself asking a friend for money to help you get through the month? These are just some indications that your living over your means and probably overspending.

In order to live below your means you need to know the areas where you’re overspending. The best method to find these areas is to track your spending. It might be difficult to do so, but knowing exactly why and where you’re spending too much is the only solution.

Remember that the key to living below your means is to defer unnecessary expenses. You should be able to identify what are the nonessential things that you buy or spend your money. By then you will know where to cut your expenses and develop a budget plan. This will be difficult because your spending can change from month to month, therefore it can take several months of tracking your spending before you have an accurate budget and actually start saving. But it doesn't mean you need to formulate a perfect budget plan before cutting your expenses. 

Start with unnecessary expenses
-eating out a lot
-night outs
-shopping or buying expensive gadgets
-vices like cigarette smoking, gambling, drinking

This expenses can be very tempting at times especially for those with credit cards, but this are actually unnecessary.  Remember that if you can't afford to buy things and pay it in cash, you really  cant afford it so you better save for it first and buy it by the time you have cash.

If you have done all this and still cant save, maybe you need to consider ways how to earn more money. But Sometimes asking for a pay raise, or applying for a higher position in your company is not an option. If this is your situation, then it may be time to consider either looking for a new job or another source of income.


#next post EARNING EXTRA INCOME

This i will discuss on my next post.. thank you for reading.. if you would like to share some experiences on how you actually solve the problem on this post or if you would like to share some ideas where i failed to mention, feel free to do so and comment below :))