LIVING WITHIN OUR MEANS
To live within our means is to spend below or according to what we make. When you aspire to get to a state of financial independence and stability, living within your means is the best step you can follow. This means your lifestyle is aligned with how much you earn.
Most people live above their means by buying things on credit, taking unnecessary loans, and running into debts.
Loans allow you to buy things that your income would naturally not cover, but this is not the right way to live.
Living within your means helps you avoid financial crisis, gives you peace of mind, and eventually financial freedom.
It teaches you self-control and discipline in your wealth and finances.
It helps you prioritize your expenses and budget accordingly to your means.
How to live within your means;
1. Know your income: To live within your means, you have to know what your means are. You have to know when your income comes in and what your income is so you can plan your expenditure in tandem with when it arrives.
2. Spend less than you make: Spending less than you make gives room for saving and planning for the future.
You can decide to tailor your spending to 80 percent of your monthly income, while the other 20 percent goes into saving and investment.
3. Boost your income: Think of ways to make an additional income to support your earnings. This could be through skills acquired to solve the problems of others.
4. Do not compete with anyone: Resist the urge to own the same material items as the people you see on the Internet, or people who are way above your pay grade.
Reasons why living within your means is important.
1. You live a debt-free life. When you live within your means, you live debt-free. You don’t have to worry about re-paying any debt.
2. You gain wealth: Because you spend only when it’s necessary, this allows you to have enough leftover which can go into your savings and accumulate over time.
3. You have peace and are not stressed out: When debtors are not running after you to recover their funds, you have peace to live a stress-free life.
4. You can secure your future: When you live according to your means, this means you have more than enough to save for the future.
Proverbs 21:20
There is desirable treasure and oil in the dwelling of the wise, but a foolish man squanders it.
www.cymi.org.ng, https://web.facebook.com/groups/cymiofficial© CYMI, written by Mrs. Esther Edidiong; Photo: Visual Stories //Micheile and Michael Longmire;
Christian Youth Mentoring Initiative provides opportunities for mentorship, leadership training, growth, and development of youths. Our vision is to raise well-balanced youths, high flyers, focused, and capable of standing out in the global world. Email us: info@cymi.org.ng
