To live within your income or within your means, you must keep your expenses at or below your actual income. When you do, you can avoid a lot of stress brought on by financial challenges.
What can you do it live within your means?
Have a budget.
It is important to know what money is coming in each month. It is also important to review your budget each month. Best practice is to plan for the next month within a week of the next month starting.
Creating a budget can be done a few different ways. A budget can be tracked with pen and paper, on a spreadsheet or even an online website or app. One I personally like to use is Every Dollar. You can check it out HERE.
Another option that is a great one is referred to as the “envelope system.” Each envelope represents a category of expense, such as “Food”, “Housing”, “Clothing”, “Gas” as well as others.
Regardless of the method you use, the key to it is having a budget is sticking to it and telling your money where to go.
Keep life simple.
When you want to stay within your means it is important to focus on the basics. It is helpful and important to keep your eye and life simple.
A few ways things to avoid, to help overspending is create a grocery list before going to the store and stick to it. Inventory what you have on hand already and what you really need to get on the upcoming trip.
Avoid going to department stores when you don’t have a true need. This will help avoid those impulse buys that you may end up regretting later.
Be content with what is really need.
Having what you need, food, clothing and shelter and being content with these things. Some of the happiest people are those that live simple lives and get by with what they have. Instead of focusing on material things they find satisfaction in what they do have. They find joy and happiness within their family, friends, and the beauty around them.
Avoid unnecessary debt.
When you have debt, you are a salve to the lender. When you take on unnecessary debt by purchasing something that isn’t a true need, but a want, people often find themselves shackled to debt that causes financial anxiety. People feel weighted down like they are being chained to a weight that they are trying to drag along.
Avoiding the use or even having a credit card will help you avoid purchasing items you don’t have money for. If you don’t have the cash to pay for it, don’t buy it.
Save before buying.
If you really want it, save for it, and pay cash for it. It may seem old fashioned, because everywhere we turn, we are offered financing or a credit card to make purchases. Saving up the money in advance and paying cash is one of the wisest ways to keep from financial stress and anxiety.
When you pay cash and not credit, you avoid spending more on the item because of high interest rates.
Get help and get out of debt.
Is your monthly spending exceeding your income?
Do you feel stuck in car payments?
Do you carry credit card balances every month?
Do you have an emergency fund?
I used to be in this situation, overspending, two car payments, credit card debt and wondering where I would get the money to pay for an emergency. Once I took control of my money instead of it controlling me, I experience so much emotional freedom and peace.
I want this for you too. Schedule a free consultation call and we will discuss what you truly want for your financial future. Schedule HERE.