Do we really know what living within our means is? People say it all the time “you have to live within your means.” but what does that actually mean? Especially here in the US we are a country who lives widely outside of our means. Capitalism encourages the spending of money. Don’t have money to spend? Get a credit card, get a loan, borrow from your parents, etc.
Living within your means, is spending your money only on the things you can afford. Now this seems simple but I think a lot of times people think they can afford things they really can’t.
It Is OK To Be Broke In College
When I was working for a restaurant as a manager I was making more then most of my friends who were also in college and a lot of times I would here them say you can afford this you can afford that, buy a new car, etc. etc. but in reality unless you are going to college on scholarships or your parents are paying for everything most college students are in debt. Which means no I couldn’t afford a new car I couldn’t afford to move out because in reality my bank account is negative. I think people who are in debt or have student loans forget that whatever your paycheck is compare that to how much debt you are in and you will soon feel like you can’t afford anything. Buy things you need; food, gas, phone bill, etc. Things you need to survive because in the reality of it unless your tuition is taken care of all college students are broke. Now I am not saying don’t have fun with your money because you worked hard for it you deserve to enjoy it so go to the movies, travel a little bit, but remember you also deserve to live debt free.
Use Credit Cards Wisely
Credit cards can be great or they can be horrible. My number one tip for credit cards is do not spend any money on your credit card unless you have that much in your bank account. Credit cards can be a great tool to raise your credit score and a lot of credit cards have the opportunity for you to earn cash back but this is only beneficial if you can pay your bill. Use a credit card for the tool that it is; to help your credit score.
Don’t Try To Keep Up With The Joneses
“Rich people stay rich by living like their broke, broke people stay broke by living like their rich.” There will always be a new cellphone coming out, a new pair of shoes, a new purse, etc. Buy things that you love and try to avoid buying new things if you don’t need to. Keeping up with the Joneses will not make you happy in the long term it will only make you wonder where your money went.
There are so may benefits to living within your means it feels so much better to know that you are in a good spot financially and are able to live stress free. Question: Are living within your means and what does that mean?