If you know how to live within your means and find joy in it well, then you have attend "financial Nirvana". Pat yourself on the back - you are amazing! Here in this article I am sharing some benefits of living within your means. The article is solely return with the intention that you The Reader get motivated to understand your means and can live happy and stress free life.
One of the biggest Perks of living within your means is leading a happy stress free life. Imagine waking up everyday without having to worry about how you are going to pay your bills. This type of morning everyone of us is desiring and dreaming of it. Please read this article till the end.
Image Credit: www.livemint.com
Image Credit: www.livemint.com
Debt free
If you live within your means that is in the limitations of your pocket then you will always have enough money to pay for your expenses. Does it will reduce borrowing and hence no worry about repayment. When you spend more than what you and you will need to take a loan to cover the deficit. This will lead to a situation where you don't have money to pay your expenses and you have to repay your loan as well. So identify your limits which your pocket allows you and try to stay within that then you won't have to beg borrow or steal for silly expenses.
If you live within your means that is in the limitations of your pocket then you will always have enough money to pay for your expenses. Does it will reduce borrowing and hence no worry about repayment. When you spend more than what you and you will need to take a loan to cover the deficit. This will lead to a situation where you don't have money to pay your expenses and you have to repay your loan as well. So identify your limits which your pocket allows you and try to stay within that then you won't have to beg borrow or steal for silly expenses.
A penny saved is a penny earned
On the finance page off of a reputed daily I used to read a line money saved is money earned. You know it's important to save for the future for the rainy days for the retirement etc. But you continue to spend like you own a magical Money Giving Tree in your back yard. You cannot have Grand plans for the future if you are careless in your present. If you don't have plans for your future then make them now. Without a plan your future looks bleak. This planning will motivate you to stay in your financial limits.
On the finance page off of a reputed daily I used to read a line money saved is money earned. You know it's important to save for the future for the rainy days for the retirement etc. But you continue to spend like you own a magical Money Giving Tree in your back yard. You cannot have Grand plans for the future if you are careless in your present. If you don't have plans for your future then make them now. Without a plan your future looks bleak. This planning will motivate you to stay in your financial limits.
Less drama at home over the budget
Financial problem is the most common cause of fight in most homes. But if there is no financial worry then it's one big drama of your head. If you are stress free you can spend quality time with your family. It will be more fun to give quality time to family rather than discussing on financial issues. For people who live beyond their means everyday is a financial emergency. If you are leaving within it means you have carefully channeled money into the right area that is Savings and Investments. Hence you are prepared for all contingencies. If at all there is an emergency just like and a medical expense you are all keypad out.
Financial problem is the most common cause of fight in most homes. But if there is no financial worry then it's one big drama of your head. If you are stress free you can spend quality time with your family. It will be more fun to give quality time to family rather than discussing on financial issues. For people who live beyond their means everyday is a financial emergency. If you are leaving within it means you have carefully channeled money into the right area that is Savings and Investments. Hence you are prepared for all contingencies. If at all there is an emergency just like and a medical expense you are all keypad out.
More disposable income
Leaving within your means doesn't mean that you give up on all the fun in life. In fact with the basics covered you have more money to spend on entertainment and fun. More over you don't even need too deep into your savings for it.
Leaving within your means doesn't mean that you give up on all the fun in life. In fact with the basics covered you have more money to spend on entertainment and fun. More over you don't even need too deep into your savings for it.
Now let us discuss how to stay within the limits of your bank balance?
Income pattern
Write down all the income sources in one diary. If your in all monthly income is variable then check your bank statement and draw an average. This average is your baseline. Now make firm resolution not to cross your take home salary or your average. In fact you must set a threshold below your baseline. At start set it up to 95% and then gradually decrease till 50 to 60% of your baseline. This threshold will help you to avoid unnecessary expenses beyond your take home salary or your baseline.
Write down all the income sources in one diary. If your in all monthly income is variable then check your bank statement and draw an average. This average is your baseline. Now make firm resolution not to cross your take home salary or your average. In fact you must set a threshold below your baseline. At start set it up to 95% and then gradually decrease till 50 to 60% of your baseline. This threshold will help you to avoid unnecessary expenses beyond your take home salary or your baseline.
Study your spendings
Go back in the time and study your expenditure over the last few months. You can find your fixed expenses such as bills regarding electricity Internet phone monthly grocery gas petrol routine maintenance of your home and vehicles etc. This knowledge of your fixed expenses will tell you exactly where you need to eliminate costs.
Go back in the time and study your expenditure over the last few months. You can find your fixed expenses such as bills regarding electricity Internet phone monthly grocery gas petrol routine maintenance of your home and vehicles etc. This knowledge of your fixed expenses will tell you exactly where you need to eliminate costs.
Delete
Once you have analysed your financial that are a lot many weak points will spring up. You will be shocked to learn that you waste so much in a month without even knowing about it. Put a stop to it right there. It is one of the biggest steps of living within your means.
Once you have analysed your financial that are a lot many weak points will spring up. You will be shocked to learn that you waste so much in a month without even knowing about it. Put a stop to it right there. It is one of the biggest steps of living within your means.
Economize
This is nothing but thinking twice before you purchase anything. Find out stores where you can find amazing deals on your day to day needs such as grocery and toiletries. Keep comparing rates and offers at stores around you as well as online stores. More you grab the offers more you can save.
This is nothing but thinking twice before you purchase anything. Find out stores where you can find amazing deals on your day to day needs such as grocery and toiletries. Keep comparing rates and offers at stores around you as well as online stores. More you grab the offers more you can save.
Keep a diary
People who keep a diary are better money managers. Keeping a record of your daily expenditure will tell you just how much you have spent and how much is left in your bank account. This will allow you to tighten the reins on spending at the right time before it's all too late. This is also a good way of studying what percentage of your monthly money baseline goes into paying for the Essentials and how much goes into fun spending. Try to keep a track of everything in your diary.
People who keep a diary are better money managers. Keeping a record of your daily expenditure will tell you just how much you have spent and how much is left in your bank account. This will allow you to tighten the reins on spending at the right time before it's all too late. This is also a good way of studying what percentage of your monthly money baseline goes into paying for the Essentials and how much goes into fun spending. Try to keep a track of everything in your diary.
Regular review
Take time out once a week to review your expenditure. Without a review you won't know when and how you crossed your baseline or the threshold you have decided. To leave within your means you need to be mindful of every penny you spend. You can also try breaking up the total amount you will be spending in a month into some Fixed installment say 4. Now use each installment weekly to take care of your expenses. Keep only that installment with you for the specified period and not more than that. This will keep you restricted to your budget.
Take time out once a week to review your expenditure. Without a review you won't know when and how you crossed your baseline or the threshold you have decided. To leave within your means you need to be mindful of every penny you spend. You can also try breaking up the total amount you will be spending in a month into some Fixed installment say 4. Now use each installment weekly to take care of your expenses. Keep only that installment with you for the specified period and not more than that. This will keep you restricted to your budget.
Always remember living within your means is not at all that green as it first appears. Take it as a challenge and their yourself to beat it. Don't give up however impossible it might seem. Slowly slowly it will become your practice to live within your limits.
Thanks for reading till the end. You may also like my money related other articles. Share this with all having budget issues for day to day life. Also comment your experience on any of the point mentioned above.
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