5 Smart ways to live within your means

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By: skyden.dredge
on 30th Jul,2011

And, quite often you spend more money than what you actually earn. Few of you also spend money just to impress others.
5 Smart ways to live within your means

It is very common that many of you can't control yourself when it comes to spending. And, quite often you spend more money than what you actually earn. Few of you also spend money just to impress others. Easy availability of credit cards and loans, instigate you to spend beyond your limits. Whatsoever, your irresponsible spending behavior put you in serious financial troubles. So it is wise if you manage your money prudently and live within your means so that you do not fall into acute financial crisis. Here we describe various ways so that you can live within your means.

Know your means

It is very important to actually know your means. In other words, you need to know your monthly salary as well as your affordability. Make a conscious effort in all the normal months that your monthly expenditure does not exceed your monthly income. If you can follow this simple principle regularly, you will surely be able to build wealth.

Do not rely much on credit cards

It is better if you rely less on your credit cards. Instead, it is recommended that you should use cash to purchase items. It is seen quite often that your credit card company may lower down your credit limit or it can even close your credit card anytime, without giving any type of warning to you. So you have to be very much well aware about the terms and conditions of the credit card that you are using.

Raise your income

In case your present income is very less so that in some cases your expenses exceeding your income, you should seriously look for options to augment your income. You should search for some other job which is more paying or else you can also join a part time job to augment your income. Also you need to ensure that you have enrolled into all types of employee sponsored benefit programs.

Do not follow others

In this materialistic world, it is often seen that many of you try to match others in respect of comfort and the material things they possess. You try to catch up with others by using credit cards or loans. But the money offered to you by the credit cards or loans are fake wealth for a short period of time. However, you will have to pay it later and you will have to pay more.

Build up an emergency fund

You may be a responsible person who lives within your means. But in case of an emergency, you may have to incur huge expenses, which puts enormous pressure to your finances. So, it would be better if you build up an emergency fund to meet these unforeseen contingencies. To build up an emergency fund, however, you are required to make some saving on a regular basis. This will help build up the emergency fund bit by bit.

If you can live within your means it will help to secure a prosperous future for you and your family.

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