By Be The Budget
Do you dream of retiring, getting out of debt, building wealth, or just living a life that doesn’t rely on your next paycheck? Well, no matter what goals you have for your financial future, they require one common thing: living below your means.
But, what does it mean to live below your means?
Put simply, living below your means is the act of spending less money than you earn. For example, if you earn $3,000 per month, but only spend $2,500, then you are living $500 below your means. This is an important financial habit, because it allows you to save, invest, and build wealth.
But, let’s be honest, that’s easier said than done.
Living below your means requires you to trade immediate pleasure for the sake of long-term gain. It means placing a higher priority on saving than you do on spending. And, above all, it takes self-discipline and sacrifice.
That said, what if it isn’t as tough as everyone makes it out to be?
What if, instead of focusing about all the sacrifices of living below your means, we focused on all the benefits? Because, seriously, there are tons of them.
Well, that’s exactly what we’re going to do!
In fact, here are 9 benefits of living below your means.
1. Living Debt Free
For a long time, I thought living below my means just meant my monthly payments had to be less than my monthly income. The problem with this way of thinking, was that it allowed me to take on debt that I couldn’t actually afford.
What living below your means, actually means, is only buying things you can pay for in full. That means no credit card debt and no loans. Just cold hard cash.
Now, when you first read that, you might think it sounds boring, and a little bit insane. But I can honestly tell you that it is wonderful to get a paycheck and not have to subtract monthly payments from it.
It is exciting when you hop in a car that you own outright.
It is glorious watching your bank account grow instead of shrink.
And it is thrilling to know that as long as you live below your means, you will never have to pay off debt again. Ever.
2. Less Stress and Anxiety
Have you ever felt ‘buyer’s remorse’? Well, when you live below your means, you almost never experience it.
You see, when you live below your means, every dollar has a purpose, and every purchase requires thought and intentionality. When you know how much money is coming in each month, you have to be disciplined with your spending to operate within that amount. And with that discipline, comes a surprise reduction in stress.
You won’t lay awake at night wondering where your money went this month. You won’t be stressing over the length of time between now and when you get paid. And monthly living expenses like water, heat, and electricity won’t even come close to making you sweat.
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