Living below your means

Page to collect and organise info related to LBYM -- Give me a day or so to clean this up. -- BeBH65

Living within your means means more than just balancing your budget. It means being aware of the difference between what you need and what you want. As Mark Twain once said, "Comparison is the death of joy," and if anything, you need to learn to find a way of spending that works for you -- not for your neighbors or best friends. Living within your means requires you to be mindful of how you spend your money, but if you do it correctly, you won't actually be depriving yourself of the things you really need to be happy.

Internet - a lot of good advise Example http://www.wikihow.com/Live-Within-Your-Means

COPY TITLES

Maintaining a Balanced Budget
Main article : Household budgeting Individuals establish a household budget in an effort to understand their cash flow- how much they make and how much they spend. A budget is a tool that can help individuals plan for desired purchases and establish savings for reaching financial goals. Budgets are often essential for people who desire to keep spending under control. For individuals approaching retirement tracking income and expenses can help determine the needed income required for retirement planning.

Perhaps the most important idea underlying the Bogleheads approach to investing is recognizing you need to save a significant portion of income every month to have enough money for a comfortable retirement. There is no substitute for spending less than you earn. The Bogleheads approach to developing a workable financial plan is to have a sensible household budget - one that provides for needed expenditures, discretionary pleasures, savings for big ticket items, and savings for long term retirement planning. Avoid excess debt, such as credit cards and home equity loans. If you have such debt, pay off those balances first. Reduce expenses and unneeded debt so you can consistently set aside a portion of earnings for decades. If you don't save enough, no amount of financial trickery will provide the returns needed for a comfortable retirement. Budget worksheets are available from many sources; choose a format that you are comfortable with.


 * 1) Create a list of essentials
 * 2) Estimate your income
 * 3) Record all of your expenditures
 * 4) Compare your income to your expenditures
 * 5) Evaluate your expenditures
 * 6) Cut the fat


 * 1) Boost your income
 * 2) Set saving goals
 * 3) Save for an emergency

Adjusting Your Perspective on Spending
Main article : http://www.wikihow.com/Live-Within-Your-Means#Adjusting_Your_Perspective_on_Spending_sub
 * 1) Distinguish between what you want and what you need
 * 2) Don't even bother trying to keep up with the Joneses
 * 3) Change your definition of what it means to be "rich."
 * 4) Know that spending less money will not decrease your quality of life
 * 5) Be grateful for what you do have

Saving Money
Main article : http://www.wikihow.com/Live-Within-Your-Means#Saving_Money_sub
 * 1) Eat at home whenever you can
 * 2) Wait for sales
 * 3) Entertain at home instead of going out
 * 4) Cancel the subscriptions you don't need
 * 5) Borrow whenever you can
 * 6) Have a garden
 * 7) Don't ever shop without a list
 * 8) Wait 48 hours before making a big purchase