Living Within Your Means Doesn't Have to be Stressful

What does it mean to live within your means? Simply put, it means spending less than you earn and avoiding debt. You might recoil at the thought, assuming this will be a stressful and unhappy lifestyle. However, living on a budget need not be an unpleasant habit.

Benefits of Living Within Your Means

Living within your means isn’t just about cutting costs—it can also lead to a more stable, less stressful financial life. Some key benefits include:

• Financial Stability: Having enough money to cover all your expenses without relying on credit or loans.
• Savings for Future Goals: Freeing up cash to set aside for big goals like buying a home, taking a dream vacation or building an emergency fund.
• Reduced Stress: Enjoying peace of mind, knowing exactly where your money is going each month.

Learn What You're Spending

Budgeting can be challenging until you learn about your current spending habits. Keeping a daily log for around a month will give you the information you need to create a workable budget.

Record every dollar spent for a short while. You will be amazed at the small amounts of money you spend that add up to much larger dollars. For example, that large exotic latte you buy to start your workday may cost only $2 more than a normal cup of coffee. However, you’ll lose at least $10 per week in unnecessary expenses.

When you see this “little extra cost” repeated with other items, you’ll learn what you are really spending and where you can cut when necessary. You can now create a stress-free budget.
 

How to Avoid Budget Challenges

• Adjust your attitude. Don’t view living on a budget as a restriction on enjoying your hard-won income. If the word “budget” bothers you, try calling it your “spending plan” instead. It’s important to feel good about getting control over your spending.
• Create a budget “your way.” Whether you’re a traditionalist who prefers pencil and paper or a tech-savvy user of online budget tools, find a budgeting style that works for you and do it your way. This will be more comfortable and less stressful.
• Use the KISS (Keep It Simple, Stupid) theory. Don’t make budgeting harder than it needs to be. Keeping it simple is much more effective and useful than designing a complex system nobody understands.
• Build in some flexibility. Don’t paint yourself into a corner. Allow for mistakes and build in some rewards for yourself. Remember, prices for things can fluctuate. So, factor in some flexibility to make changes free of guilt or worry.
• Set goals. You’ve been told since you were young to set realistic goals. If you’ve waited to develop this habit, start now. Living within your means is much easier when you have one or more goals in mind. Think about your priorities and integrate them into your spending and saving plan.

If your budget feels very inflexible or tight, think about ways you might increase your income. There may be some ways to improve your income that are painless and effective.

Remember, living on a budget isn’t a bad thing. It’ll allow you to manage smaller, repetitive expenses, so you can afford better, more expensive things in the future. You’ll not only be stress-free, but you’ll enjoy life more.

One important part of planning for a secure future is making sure you have the right life insurance coverage. With the right policy in place, you can enjoy life with less stress, knowing your loved ones are protected.

Call us today at 1-800-704-2180 to speak with one of our dedicated representatives and review your current policy or explore new coverage options.