How to Live Within Your Means
As you began reaching adulthood or working on your personal finances, you’ve probably heard (or read) that you need to “live within your means.” It’s a standard process that will help ensure everyone is more financially responsible and will have long-term healthy finances.
To “live within your means” simply means you are ensuring that the amount of money you spend is less than what you bring in every month.
What is Living Within Your Means?
For some people, living within their means is pretty easy and many have no trouble transitioning. However, it can also be challenging for others to break bad financial habits and get spending under control.
Why Can It Be Difficult to Live Within Your Means?
One of the main reasons it can be difficult to live within your means is the direct access to credit cards. If you have multiple cards with decent credit limits, it’s incredibly easy to swipe it constantly and buy things.
Even if you do not have an account, the constant access to the internet makes it tempting to spend. Plus, you are bombarded by marketing ads and emails with coupons.
You see them enjoying themselves, maybe have the newest iPhone, or whatever and feel like you need to keep up. This is sometimes referred to as “Keeping up with the Joneses.”
Fear of missing out
And when it comes to your finances, it could be hindering how you spend money. People like to show off their lifestyles, successes, and all the cool things they have. It can make you feel bad about your own life or feel like you are way behind your peers.
Feeling limited can cause you to make more extravagant spending choices or poor financial decisions to try and shake that uneasy or unhappy feeling.
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