Living within your means can be difficult. It requires planning, discipline and awareness of what your personal financial limits are.
Getting started on planning your finances and adhering to your personal financial plan day in and day out can be a bit of a challenge — especially at first. But, as time goes by, it becomes easier and ultimately a positive, life-changing experience. As you gain control over your finances, you will have an enhanced feeling of personal empowerment and a more comfortable, and less stressful existence. Train yourself to be financially responsible and live within your means now and it will serve you well when you are retired and living on a fixed income for life.
Remember this; it isn’t a matter of not having enough money; it’s simply a matter of living within your means. Most people find that big expenses such as mortgage, rent, auto payments, taxes and insurance are usually easier to budget for and manage. The problem for many is the unplanned emotional purchases, which often serve as a death to personal financial solvency. These kinds of expenditures, which are made without thought have to stop. It’s very easy to get carried away and suddenly find yourself in debt.
The problem is mind-set. Spending brings immediate gratification, while saving brings a sense of missing something that you perceive will help to make you feel happier. The truth is; savings is simply a deferral of consumption.
There are many things to save for: an emergency fund, a down payment for a home or an automobile. But the biggest savings need is for your retirement.
Retirement is a time when you may be living for 10 to 40 years without earned income. Let that sink in. The key is to live well below your means so you can save for your future consumption. Here are a few suggestions to get you started:
• This first one is my favorite, and once mastered, will take you to the land of personal financial independence: a two income household devises a plan to live from one income and save…