We've all seen those people who have the "average" jobs, earning the "average" income. However, those same people have the latest and greatest big screen t.v., cell phone & plan, the biggest house on the block and the best car in the driveway. They look happy when you seen them.
The reality of these people is they are living check to check to check. Only problem is their checks never really cover the bills. They are often late, receiving repo notices for their cars and threats of their home being taken. Yet they put a fake smile on their face and act like nothing is wrong. Inside money is a huge issue. Money is a huge concern and they are always wondering how that next payment will be made.
Living beyond your means can be a huge gamble. One wrong move or missed payment and you could loose it all. Life gives no guarantees. Be ready for your life to end today. Plan that your life will go on for another 100 years and do the best you can.
Don't turn into these people. Here are some helpful tips:
- Live in reality. Before you buy think about the payment. Can you make the payment? Can you make the payment if you did not work for six months?
- Protect your credit. Check your credit reports. This is valuable information that will affect the interest rate you get.
- Know where your money is coming from and going to. Track your spending.
- Make sure your home is conserving energy. From light bulbs to the water heater.
- Make sure your car is tuned up and running right.
- Conserve water when possible.
- Turn off lights
- Seal windows to save on your heating or cooling bills.
- Open the shades & drapes to let heat in. Close them to keep heat out.
- Run washers, dryers, dishwashers and other things at "off peak" times.
- Wash full loads of laundry.
- Keep the refrigerator closed to keep the food cool. Also, keep the fridge full even with empty containers as it will take less energy. Same thing is recommended for the freezer.
- Shut off lights, t.v., stereo's and things when not in the room using them.
- Combine errand trips with other trips and conserve gas.
- Stock up when items are on sale. Plan your meals around the grocery store sales.
- Plant a garden big enough to feed your family.
- Look at your cable bill. Do you need all those channels?
- Look at your cell phone bill. Do you need all those minutes?
- Look at your phone bill. Do you need the land line?
- Look at your electric bill. Is there anyway to cut that bill?
- Look at your water bill. Is there a way to conserve? If it jumps, there might be a leak.
Add your own money saving tip below.
Also, if you live beyond your means. Let us know how and why you do it?
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Comments: 19
Michelle - Great money saving tips. Thank you for sharing.
*Get everyone on board. Having one's partner - heck, the whole family - on board for a "financial constitution" can make financial decisions easier to make.
We do not live beyond our means but there's still ways we could cut back. I know people who live FAR beyond their means and the amount of stress they're under (not to mention how it impacts their relationships) is tremendous.
My suggestions are don't get things you don't really need. Don't get a cell phone if you don't need it. Don't get cable TV unless you can afford it or there is no TV reception at all in your area. Hang on to that car a little longer while you save up for a new one. Do you really need the latest electronics or the biggest TV?
check out my money saving articles here:
http://www.gather.com/saving%20for%20the%20average%20person
I try to stay within our means, my husband could care less...charge away...
We do not carry a balance on our credit card, we pay it off in full each month that we have a balance. We do save money with the rewards that it offers though. We get free nights at hotels, discount airfare, etc. If it's something that you have to spend money on...why not put the cash aside to pay off the credit card right away and gain the rewards if you can. It's defeating the purpose if you're paying any finance charges though.
Of course, not everyone is fortunate enough to make an income that covers more than the basic needs. You can't save if you are barely able to put food on the table. Very often, this is the result of spending on wants instead of needs. But sometimes, income barely covers needs with no room for wants.
Everyone should track their spending to see where they can cut back if at all possible.
My better half has two young adult daughters and even though we don't all live together, we share a cell phone family plan. That saves A LOT!
His youngest daughter was talking about not going to college next semester because of trying to get tow jobs to pay for rent, car, etc. Neither of us wanted her to quit so we looked for ways to convince her to go.....
We found out how much getting her own health insurance was going to be since she wouldn't be covered any longer under his if she wasn't a student. YIKES! It was cheaper for us to give her more money every month to go to school than it would have been for us to cover her individual health plan! And the gravy is that she stays in college!