Wednesday, March 14, 2012


Are you the kind of person that gets it and spend it all? Well, you may have it in abundance now but how do you live below your means today to prepare for the lean season?
Whiles others instinctively seem to know how to get what they want, even on a limited income, some need help in managing their finances to get what they need and want. Research shows that people worry more about money than any other problem.The joy of having coins dancing in ones pocket brings much fulfillment and  greatly desired to be spent on instant gratification.However, it is very important to learn how to live below your means to fulfill some desires in later years. In this post, I intend sharing with you some great techniques to help you live below your means whilst loving it. If you are a spendthrift, then this post was created with you in mind. Read on to find out. If you desire to cultivate the habit of living below your means, then do the following:
  • ·         Create a financial Plan
You would have difficulties living below your means if you don’t have a financial plan. A financial plan is a written record of your goals, how you intend to fulfill them, as well as which are more important to you and which are less important to you. Establish a plan for earning, saving, and spending money
  • ·         Estimate your monthly Expenditure
Write down an estimate of your basic expenses using your previous experience. Begin by listing your fixed expenses such as rent/ mortgage, loan payments etc.Then take notice of your flexible expenses like food, transportation, cell phone charges ( one of the major drain of finances) and the like.This would give you a rough idea of  how much you spend each month.

  • ·         Track your cash flow
 You will have a hard time living below your means if you don’t know what you are spending your money on. Question where every penny in your pocket goes. It may be obvious that you are spending money on what does not really fit into your financial plan. Do you buy stuffs on impulse or you buy what you really need? Your tracking method doesn’t have to be fancy – just make sure the method you choose is something you’ll use consistently, a small note pad and pen is just right.

Everybody can live below their means, and even save 10% of their income, make sure you understand the difference between what you need to live and what you want to have to be comfortable. What do you think