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How to live below your means



Living below means

You struggle financially because you do not know how to live below you means.

Whiles others instinctively seem to know how to get what they want, even on a limited income, some need help in managing their finances to get what they need and want. Research shows that people worry more about money than any other problem. Here are some few steps to take to live below your means.

Create a financial Plan

You would have difficulties living below your means if you don’t have a financial plan. A financial plan is a written record of your goals, how you intend to fulfill them, as well as which are more important to you and which are less important to you. Establish a plan for earning, saving, and spending money

Estimate your monthly Expenditure

Write down an estimate of your basic expenses using your previous experience. Begin by listing your fixed expenses such as rent/ mortgage, loan payments etc.Then take notice of your flexible expenses like food, transportation, cell phone charges e.tc.

Track your cash flow

You will have a hard time living below your means if you don’t know what you are spending your money on. Question where every penny in your pocket goes. It may be obvious that you are spending money on what does not really fit into your financial plan. Do you buy stuffs on impulse or you buy what you really need? Your tracking method doesn’t have to be fancy – just make sure the method you choose is something you’ll use consistently, a small note pad and pen is just right.

Everybody can live below their means, and even save 10% of their income, make sure you understand the difference between what you need to live and what you want to have to be comfortable.