Money Glee Monday #23 - Living within your means, what does it all mean?

A recent article on SMH compares the personal budget to federal government budgets. While the Australian governments annual budget was released a few weeks ago the point of living within your means will continue to be a topical point for most households around the world. If you'd like to read more about "budgeting" & living within your means read on here about reducing expenses vs. increasing income or why budgeting (or spending plans) are important.

What is the point of living within your means then?

The article mentions:

"The most reliable way to achieve financial happiness is to have a budget."
 

Would have to say that sure a budget or spending plan as we call it round here is an important part of achieving financial happiness however there's much more to it.

The point of living within your means

  • You're able to spend on the things in life that mean the most to you, be that friends, partners, kids or even yourself
  • You can contribute back with the amount you feel comfortable with
  • You're able to lead by example for others, which will mean we're able to focus less of financial concerns
  • Life becomes more about the people in your life rather than the stuff in your life
If you want that morning coffee, buy the damn thing although be accountable for where in your spending plan this will come from

If you want that morning coffee, buy the damn thing although be accountable for where in your spending plan this will come from

What living within your means isn't

  • Clipping coupons all the time. While yes, coupons are great & form part of experiencing the things in life with love, if you focus on scarcity or lack of resources, reaching your destination may not happen
  • Spending $400 on a Friday night at a local club. Unless you're earning $400,000 per year, then it's probably okay
  • Bragging that you're brilliant with everything money. We're sure there's skeletons in everyone's financial closet
  • Borrowing money off friends or family all the time. This simply means you're probably over-spending

What living within your means is all about can be summed up in one sentence.

Being consciously aware of where your money is going, what your financial goals are and humbly being curious enough to keep learning about money, relationships, communication and yourself as these all affect your Money Life.

What are your thoughts on living within your means? Interested to hear your thoughts

How can we add more value to your financial / personal lives?

We'd love for you to like, comment, share or suggest. Remember to live your Money Glee! :)