Living bellow your means

[SoreArms]

Living below your means

The single most important rule to follow in order to accumulate wealth.

I learned this in my personal finance class. Unfortunately, I am always above my means and live check to check.

What are some tips that you guys can give to me, and others in the same boat, that have helped you live below your means?

 

[beastboy]

For me it is the enjoyment to watch my bank account grow......I hate spending money.

You have already reached the first step...realizing that you need to change...now comes the discipline.

 

[bran987]

The single most important rule to follow in order to accumulate wealth.

I learned this in my personal finance class. Unfortunately, I am always above my means and live check to check.

What are some tips that you guys can give to me, and others in the same boat, that have helped you live bellow your means?

there are a lot of articles about this I will try to find one for you

one thing you can start with is setting up an automatic investment plan (after you pay off all your credit cards). It will automatically invest a certain amount for you out of your paycheck, so you don't even have to think about it, it never even seems like you had the money to begin with, and so it doesn't bother you

I know one item that costs WAY more than people realize is eating out at restaurants. I'll see if I can find those articles.

 

[bran987]

http://www.bankrate.com/brm/news/pf/20010202b.asp

shit, here's a whole forum about that:

http://boards.fool.com/Messages.asp?bid=100158

 

[beastboy]

bankrate is a great site....I check it daily.

 

[SoreArms]

shit, here's a whole forum about that:

http://boards.fool.com/Messages.asp?bid=100158

Cool, thanks

we actually watched a Motley Fools video in my class

 

[MattTheSkywalker]

One suggestion is to push your means so far up that you can't possibly spend along with it. You'd be surprised though, what you can spend.

Until then

write down everything you spend, and how much it costs. Don't wait for the bank statements - write it down as you do it.

Do this for a month. It will make an impact.

 

[bran987]

One suggestion is to push your means so far up that you can't possibly spend along with it. You'd

oh really, is that all we need to do?

j/k, lol, yeah I like this idea better too

 

[calveless wonder]

One suggestion is to push your means so far up that you can't possibly spend along with it. You'd be surprised though, what you can spend.

great advice
this exactly what i do....it keeps me on my toes constantly and fuels my drive and ambiition.

 

[SoreArms]

Do all of you guys have a budget? Is it a weekly or monthly budget?

 

[georgie24]

i have to liquidate my bmw. i just dropped 700 bucks on some bullshit.

 

[Ulcasterdropout]

Do all of you guys have a budget? Is it a weekly or monthly budget?

I want to hang out with whomever doesn't have a budget.....
monthly for me

 

[MattTheSkywalker]

Do all of you guys have a budget? Is it a weekly or monthly budget?

I don't have a budget. I kind of just 'sense' when I am spending too much.

A budget is a useful tool. Just don't get too wed to it - it prevents the stretching that so often precedes growth.

 

[The Red Dragon]

I read somewhere budgets are useful for businesses and companies but not for general people because business buy things out of necessity where people buy things out of want (wants are then perceived as necessities).
I'm thinking of having 10% of my paycheck automatically docked and placed into an index fund or whatever - still looking into this process (Long term growth). Although I have the discipline to have money stuck in my bank account and not touching it (I'm still a full time student).
But you can't spend money that you haven't seen or fallen into your hands yet.

 

[thelion2005]

Re: Living below your means

The single most important rule to follow in order to accumulate wealth.

I learned this in my personal finance class. Unfortunately, I am always above my means and live check to check.

What are some tips that you guys can give to me, and others in the same boat, that have helped you live below your means?

(1) Lease your sensible car. I always find the best bargain and lease for 3 years.
(2) Eat out once a week only.
(3) Vacation within your means.
(4) Give reasonable, thoughtful gifts. Remember ... jewelry is offered at 300% over cost.
(5) Pay off all credit cards at the end of the month.
(6) Invest in TES plan each month - 10%. Never touch it!!
(7) Invest in your home, but do not load it with "stuff" to impress.
(8) Shop at resale and dollar stores. You'll find new item there.
(9) By refurbished appliances, tools and entertainment systems. Sears has outlets full of warrantied items like this.
(10) Buy reasonable clothes from outlets or discounters, including shoes.

 

[ZKaudio]

eating out kills me... 5x/wk minimum.

 

[jafo]

1.pay off all debt that you have starting with the higher interest rates

2.do not carry around cash (most of the time people spend mony as an impulse) it is harder to controll/track how much you are spending and how fast you are spending it

3.have 2 bank accounts 1 for checking and 1 for saving (meaning they are not on the
same ATM or check card)

4. limit your self access to your money (dont carry credit or atm cards)
most of the time when you spend money if you have to go home to get your check
book,credit/atm card buy the time you get home you wont want to go back its like
having a cooling off period..this will help get ride of the impulse shopping

5. never compete with the neighbors if you have a car you wont need a new one
same thing with electronics.radios computers ect ..if what you have works why
spend money on a new better one that yoou really dont need

Now I am not saying be a miser with your money I am saying controll your spemding habits and take steps to keep from waisting money

GOOD LUCK !!!