Live below your means…
You hear it all the time, but do you know what it means to live below your means? More importantly, have you figured out how to do that? The truth is many people live above or beyond their means. “Between 1993 and 2008, personal savings rates in the U.S. declined, hitting the lowest levels since the Great Depression in 2006 by falling into negative territory, according to the U.S. Bureau of Economic Analysis,” according to Glenn Curtis of Investopedia. It took a credit crisis and near-global economic disaster to get Americans to close their wallets and stop spending and “acting” rich.
Photo Courtesy of Mint life
Are You Rich
First, let’s clarify by what I mean by “rich,” as this is a subjective term. It’s an ever-moving target. It’s like trying to nail jello to the wall. Defining “rich” is as personal as taste preferences of food or fashion. Many times, even when you are considered by others to be rich, you don’t think of yourself that way. Why? It’s all about perspective. The problem is you don’t “feel” rich. For the sake of this post, I won’t define rich…I’m leaving that task to you.
Recently, I shared the first reason why you’re broke is because you don’t have a budget. Remember, money without a direction will disappear. You can read it HERE. Next, I shared the second reason you’re broke is because of bad habits. Bad habits interrupt your life and prevent you from accomplishing your goals. You can read about it HERE. Now that you’ve caught your breath, let’s talk about the next reason why you’re broke…living ABOVE your means.
Living ABOVE Your Means You Fire The Jones’
We all know “that” family… the happy, perfect family who seems to have it all. Everyone has a “Jones” family on their block and while some shrug their shoulders and don’t care that the “Jones” just brought home a new Mercedes, others feel as if they need to not only keep up but to outdo this neighbor or even friend.
Living below your means in this high-pressure, credit-based, gotta-have-it-all-right-now society is not exactly easy. It takes skill and determination to go against the tide and buck a system that encourages spending all we have now plus what we hope we’ll get in the future.
Occasionally, we make questionable decisions to impress the others. The earlier we recognize our self-worth isn’t tied to our possessions, the sooner we’ll reach financial freedom. Keeping up with the Jones’ indicates an incredibly showy façade of big-ticket purchases accompanied by years of fiscal battle to repay the debt with interest accrued.
There’s no shame in driving a second-hand car with a few miles. You don’t need the pressure of working extra hours just to cover credit card payments. To live below your means is to create a lifestyle you can pay for with money left over.
Here’s the secret for living below your means: Buy what you need, want what you have. That’s it. Eight words that could change your life forever. Eight words that point the way to contentment. Here’s a great place to get started filled with tips on how to live below your means and live well.
Are you living below, above, or beyond your means?
