Live Within Your Means
It may seem as though your dollar doesn’t stretch as far as it used to, and although that is certainly true for some things that have gone up in price you might want to stop and take a look at where your money is actually going each month.
The truth is that some recurring expenses used to be luxuries or only purchased every so often. It wasn’t too long ago that having a cell phone wasn’t commonplace. Having a cleaning service for your home was reserved for people with lots of money. The only people who had designer clothes were the people who had the money (or the credit) to purchase these items.
Things have changed over the years. It’s not uncommon to spy a middle class woman walking through the mall sporting a designer handbag that costs as much as her monthly car payment. Go into a middle class home and you might encounter state of the art home theater equipment complete with a huge, expensive television set…even though the family living there has no money whatsoever in a savings account. For one reason or another, everyone feels entitled to all the niceties offered by retailers, whether or not they actually have the money to pay for it.
If you’re having trouble making ends meet then you should look at the things you pay for and decide if you actually need it or if you just want it. Here is a brief list of the type of expenses you should examine:
Cell phone: You may think you need a cell phone, but unless you need it for work then do you really need a cell phone? It’s not like you wouldn’t be able to get access to a phone if you needed to contact someone. How much money would you save each month if you didn’t have a cell phone?
Cable and extra features: How much more time would you have on your hands if you didn’t plop in front of the television every night? Perhaps a more important question is this: How much more money would you have if you didn’t pay for cable and all the fancy features?
Brand new designer clothes and accessories: Maybe you’re passionate about fashion, but if this is the case then you may want to set one afternoon aside every month to sift through some consignment and thrift stores. Designer clothes and accessories are not priced for everyone, and you shouldn’t need a second mortgage to get your wardrobe ready for the next season.
Luxury car: You need your car to get you from Point A to Point B without breaking down, but do you really need to pay thousands more for the extra features and the privilege of driving something fancy? Find a (used) car that is reliable, but don’t pay extra for things that aren’t going to make much difference in the long run.
There are plenty of other things that can really destroy your personal finances. Try living within your means and you will quickly find that your budget stretches a lot further than you thought it ever could.
