What it is and what it’s not
When living beneath one’s means if mentioned in conversation, many assume that it means depriving yourself of the things you enjoy. In actuality, living beneath your means is simply a matter of not spending more money than you earn. It’s a matter of building in a substantial enough financial cushion that when unexpected expenses pop up, you have a surplus of emergency funds to absorb costs. To do this successfully, many financial coaches recommend living on at least 15 percent less than the amount you earn. For example, if your monthly income is $5,000, then your monthly expenses should not exceed $750.
Continue reading to find out how you can begin to live below your means and why you should commit to doing so.