Live Below Your Means and Prevent Debt

 

Living below your means may not seem to be the best way to live your life, but if you wanted to be debt free, then this is the way to go. Living below your means does not mean that you have to live life like a poor man. It simply means that you have to apply some amount of discipline in handling your finances. Even with the popularity of credit cards and loans, you should only spend on the things that you can afford. Living beyond your means would not only get you into trouble but could also lead you into the deep pit of debts.

As the famous Benjamin Franklin once said, a penny saved is a penny earned€¯ Imagine the things that you can save when you live below your means. Being responsible in handling your money is the first step in living a debt free life. To get you started, here are some tips. Take a look at your budget. You should be able to know how much you earn on a monthly basis. With your earnings in mind, make sure to spend only on the things that you can afford. Keep a log of your expenses. Mark the things that are eating up a big part of your budget and cut down on them.

Get rid of unnecessary things. Avoid alcohol and cigarettes. This would not only allow you to save up big, it would also assure you of a healthier life. Office meals tend to be quite pricey. It would be a good idea to prepare your lunch at home and bring it to the office. As much as you can, say no to junk foods and sodas. Find the gas station that offers the cheapest rates. If you can, join carpools on your way to the office.

Most people love dining out. Why not try something new? Learn to cook! Not only would you enhance your creativity, you would also be surprised on how much you can save. Only use your credit cards in cash of emergency or if you suddenly ran out of cash. Always pay your monthly bills on time to avoid paying more than you should on late fees and penalties. If you have more than one card, always prioritize the card with the highest interest and pay it first.

Living below your means does not mean that you have to stay in your house all the time, you can go out and enjoy! If you want to go on a vacation, book in advance so that you can have the cheapest rate that airlines and travel agencies have to offer. Shop wisely. Thanks to online stores, you can now save as much as 50% on products that you see in the usual retail stores. You can also use discount coupons and promo codes to save even more.

Living beyond your means take a lot of sacrifices. Use your common sense and practicality in handling your money. A little discipline can save you real big!

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