The Only Way To Build Financial Security Is By Living Below Your Means: Here’s How To Stop Spending More Money Than You Actually Have
It’s no secret that we’re living in an era where, thanks to social media and the internet, it’s so easy to fall into the trap of spending too much money on things we don’t need.
This obsession with sharing our material items and boasting about how much better we feel once we’ve bought ourselves “treats” online is becoming dangerous to our spending habits.
Often, we forget the famous saying, “Never spend more than you earn,” and many of us tend to do the opposite when we get wrapped up in buying superficial things.
If you’ve recently found yourself panicking in the days before getting your next paycheck, pushing your spending too far, dealing with credit card debt, or having nothing in terms of savings, you’ve likely been living above your needs.
The key to being financially secure is living below your means. Does this mean you have to hoard away your money and live every day like you’re on an episode of “Extreme Cheapskates?” No, but it does mean you should stop spending money as if you have an endless supply of it.
Here are a few ways to live below your means and stop spending more money than you have.
Look back on your spending habits
Do you dread looking at your bank account? If you do, that’s usually a sign that you struggle with spending too much to the point where you’re almost ashamed to see how much you’ve spent. It’s time to rip off the band-aid and evaluate your spending history to see what you’re putting too much or too little money towards.
Create a budget
baranq – stock.adobe.com – illustrative purposes only, not the actual person
The most classic way to get back on track with your finances is to make a budget. You can use a budgeting app, create your own spreadsheet, try methods like cash-stuffing, etc. When making your budget, prioritize your basic living expenses before any ‘fun’ stuff and calculate how much money you can put toward your monthly savings.
If budgeting ever starts to feel stressful, just remember that you’ll be doing your future self a huge favor.
Set short and long-term goals
Think about where you want to be financially in a few years, and consider some debts or payments you wish to be rid of in the upcoming months.
For instance, if you have some outstanding medical bills lurking over your shoulder, make it a goal to contribute more money to paying those off each month instead of putting that money towards something you don’t need.
Limit your spending
With social media influencers making us feel like we need certain things in our lives to feel happy or glamorous, it’s easy to fall into the habit of constantly wanting to buy stuff. But while those items may give you temporary satisfaction, you’re risking your chances at long-term financial security.
Do your best to reign in your spending. You do not need to buy something every time you and your loved ones go out on the town.
Start cutting back on how much you spend on clothes and trips. Consider looking up good deals and places that offer coupons for the more luxurious things you love, like spa treatments and dinners out.
Give yourself an allowance in cash
One of the best ways to keep your checking account in check is to take out whatever money you’ve budgeted to spend on ‘fun’ things in cash instead of using your debit or credit cards.
That way, once you’re out of cash, you know it’s time to stop spending. It’ll better protect the money you have in your accounts and will cut you off after you’ve spent that budgeted amount.
Try not to stress
Again, you’ll be doing all of these helpful things because you care about yourself and want to set yourself up for success.
Instead of getting stressed or sad every time you have to stop yourself from buying something you want but don’t need, pat yourself on the back and remember that you just saved money that can be put toward something really important.
It can be really easy to get stressed out while handling money and trying to live below your means. Take things one day at a time, and try your best to be present and mindful. You’ve got this!
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