31 Jan
2010

Living above your means is a sure-fire way to run up credit card debt, get dependant on payday loans, and generally ruin your credit rating with plenty of personal loans and debts. Living below your means allows you to set money aside and build your emergency fund – even live debt free – but many people associate living below their means with deprivation. It doesn’t have to be that way.

Many of the things you pay money for right now you would not miss if you replaced them with something else. For example, if you spend money on a magazine or newspaper subscription, you can save your money and still get your reading – just read the newspaper online or your magazines at the library. Or, share a subscription with a friend or neighbor.

Just about everything in your life has a thrifty solution. Make a list of everything you spend money on right now and find ways to cut your bills by at least 33%-50%. It’s easier than you think. Don’t just look for things to cut out of your life – you can enjoy the same things you enjoy right now, just for less. You can still go on vacation – just choose a less expensive place to go or swap houses instead of staying in a hotel. You can still watch lots of movies, but try to go on cheapie nights or rent from the library for free. You could save hundreds of dollars each month without giving up a thing.