Living Below Your Means: Powerful Ideas to Help

Are you trying to live below your means?

Spending less than you earn is the only way to get ahead with money.  If you are one of those people that finds there is always more month left at the end of the money, then keep reading.

I found some very powerful ideas for living below your means that I want to pass along.  Making significant changes to our lifestyle takes time and effort.  It also takes broadening our minds.

Many of us, including me, often get stuck doing things the same old way.  We seem to develop mental blinders that keep us from even seeing other possibilities.  That’s why I went in search of some really great ways to save and manage money.

I want to help you and me find new ways to pinch a few pennies.  Saving a little here and a little there is how you’ll whittle down your spending until you are living below your means.

Powerful Ideas for Living Below Your Means

Sometimes we think we are doing everything possible to squeeze every dime out of our budgets when in reality there is so much more that we could be doing.  We just need a little help expanding our ideas of what is possible and seeing new areas to focus our efforts.

Here are some powerful ideas to help you live below your means:

1.  Begin by Clarifying Your Purpose

Why do you want to start spending less?  It is very important to clarify your purpose.  If you can identify a higher reason, it will make things a lot easier.   For instance, one of the big reasons that my wife and I wanted to become debt free was so we would have more money available to give to charities, family and people we know in need.  This became a real motivator for us.  Getting the 20-ton gorilla off our back, freed us up to use our money for the things that really mattered to us.

As Ron points out very powerfully in Monitoring Your Money Isn’t The Same As Budgeting Your Money, you need to align your money with your values.  This is a crucial first step in achieving real success at living below your means.

2.  Believe It Is Possible

I think many people have lost hope in their financial situation.  They are overwhelmed and feel they have no one to turn to for help.  This seems to be the case for Arlin, one of Brad’s readers over at Enemy of Debt.  In Feeling Like You Are Bankrupt, Is Different Than Actually Being Bankrupt, Brad spells out for Arlin many very positive steps he can take to start digging out of his financial mess.  He encourages his reader to reach a little further and to dig a little deeper for solutions other than bankruptcy which is really no solution at all because it has a ton of its own issues.

Just like Arlin, you may feel like you’ve very nearly reached the end of your rope.  Well, please don’t give up!  You’ve really got to believe that it is possible to turn your financial ship around.  If this is you, then I’d highly suggest that you pick up a copy of Dave Ramsey’s The Total Money Makeover.  It will lay out a plan that will restore your hope and it will encourage you along the way!

3.  Be Methodical in Your Approach

You’ve got to have a well thought out and logical plan for how you’re going to start living below your means.  All change requires a plan.  I really like the plan that Tiffany, a newly single mom, came up with in her article for ptMoney called The Plan: Making Every Dollar Count.  She is very methodical in her approach and has analyzed her situation very carefully.  This significantly increases her chance of success.  You can customize Tiffany’s plan for yourself.

When the crap hits the proverbial fan, it is easy to run off with your hair on fire making all kinds of rash financial decisions that may or may not lead to better results.  I’d highly recommend taking a deep breath, finding a rational voice of reason and formulating a sound plan instead.  Be methodical in your approach and you will see greater results!

4.  Leave No Stone Unturned

What ways of cutting back haven’t you examined?  Sometimes we feel we’ve cut absolutely everything possible to cut.  However, that’s rarely the case.  Most of us have a bunch of fat in our budgets that we simply do not see.  Take for instance, your daily commute to and from work.  Ramsay wrote an article for FrugalDad where he examines the Costs of Commuting, and Nine Ways To Reduce Them.  It is a brilliant example of leaving no stone unturned.

You’ve really got to track your spending and put everything out on the table in order to make this work.  Nothing should be considered sacred and every dollar you spend should have a specific purpose.

5.  Stretch Until You Think You’ll Snap

When you’ve pushed it as far as you think you can, push a little further.  Be sure you squeeze that last little drop out of your budget so you are getting the absolute most out of your money.  If it ain’t hurtin’ a little, then you are NOT stretching yourself far enough! 

Want some ideas for how to be a little more frugal?  I suggest you check out 9 Tips to Stretch the Life of Common Household Items at My Dollar Plan.  Can you really make a bra last over 6 years?  Are you properly maintaining your vacuum cleaner?  This is where the rubber meets the road!

6.  Spend When You Need To

Okay, if you’ve followed some of the links that I’ve provided, then you’ve covered a lot of ground on how to save money on expenses.  However, it is also important to know when to spend money.  Trent over at The Simple Dollar addresses this very nicely in his response to a reader’s question about When Living Cheap Catches Up With You.

Sometimes it is necessary to replace things that are broken, worn out or no longer usable.  There is no reason to feel guilty about this!  Be realistic about it, life takes money.  My best advice is to pay cash for whatever you buy.  This requires that you anticipate your needs and carefully save for the purchase.  You’ll thank yourself later!

What ideas have you found useful for living below your means?  Leave a comment so we can all benefit!

Photo by Shawn Allen

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