It’s safe to say, that the cost of living doesn’t reflect our salaries, which often entails living beyond our means. It’s a frustrating situation to be in. You work hard, yet it doesn’t feel like you can enjoy your money.
This sense of injustice often leads people to throw caution to the wind, and simply purchase what they like, and live the lifestyle that they really deserve. While we can all sympathise with this plight, when you constantly live beyond your means, you may quickly find yourself in financial trouble. This kind of trouble can lead to outstanding bills, devastating interest rates and spiralling debts.
It’s okay to treat yourself from time to time and purchase expensive items as long as you know you can afford them. Living under your means doesn’t always mean missing out. Here we’ll look at how you can stop living beyond your means with some handy advice.
Learn how to budget
You’ll find this piece of advice everywhere, but that’s because it really works. Learning how to budget can keep your outgoings in check – use this handy calculator to get started right now. However, a budget only works if you’re determined to stick to it. Start by going through your outgoings and incomings, payments and bills each month, and how much you set aside for financial emergencies. The better you are with your money, the more comfortable you’ll be financially.
Change your lifestyle
Maybe you like to always have the latest phone, or you enjoy shopping for the latest kitchen gadgets and home décor pieces, while you might enjoy this lifestyle, your bank balance might not. And it’s a quick way to spiral into debt, especially if you have lots of direct debits to pay each month. Try to commit to a change in your lifestyle.
This could mean only going out with friends once a month or sticking with an older model of smartphone rather than the newest one. Even the most subtle of changes could keep you out of debt and keep you living within your means.
It’s easy to think that living within your means translates to a lack of enjoyment and fun. But it’s just not the case. When you commit to budgeting, don’t forget to put whatever money you can aside for fun! Maybe there’s something you really want, or you want to save towards something special. Make sure you’re enjoying your wage (within reason) and remember to pay money into a savings account or ISA each month. This way you’re more likely to stick to your budget!
And finally, use cash
If you love online shopping or paying via contactless then it’s difficult to associate money with something physical. Which means you’re more inclined to spend it. When you switch back to cash and only limit yourself to a certain amount each week or for certain purchases, you’re more inclined to hold onto it. This trick will certainly help keep your spending in check and help you live comfortably within your means.
This is a contributed post in partnership with creditfix.co.uk