How to Start Living Below Your Means in 2024

Contrary to popular opinion, the key to financial freedom isn’t solely based on the amount of money you bring into the household each month. It’s about learning how to manage your money and prioritize your spending. This is how you learn to live below your means.

How can I save money with inflatation?

I hear you. I really truly do. It was only a few years ago that my husband and I were spending more than we were bringing in. With rent, grocery, and basic living costs going up, it seems impossible. There are some things you just can’t control. However; these few things, you can! Even if it seems impossible, every little bit helps!

How to Live Below Your Means

Below, you’ll find some great suggestions on how to live below your means in order to build savings. You won’t have to move into a shoebox or completely forgo entertainment and shopping – but the tips below will help you learn how to make better spending choices.

Stop the Comparison Game

If you’re constantly in a competition with your neighbors, coworkers or friends, you’re never going to stop spending. In the back of your mind, you’ll always try to “beat” them by having the newest car, biggest house, most expensive clothing, and more.

Once you eject the competitiveness from your mind, you’ll be able to effectively trim the fat from your budget.
Implementing a no spend challenge is a great way to decipher what are wants or needs.
Work with what you have. There’s no need to upgrade your car if the one you’re driving now gets you from point A to point B. If your current home isn’t to your liking, make some updates or redecorate – it’s a far less expensive fix than purchasing an extravagant estate.

Trim Your Grocery Budget

Coupons aren’t the only way to save money on your grocery bills (though they certainly help). You just need to be conscious of your purchases. It’s possible to feed a family of four for under $10 – with a high quality meal to boot!

Creating a meal plan is essential
Never go grocery shopping hungry or tired.
Three nights per week, cook up something very inexpensive for dinner, such as beans and rice or homemade soup. It’ll be a nice change of pace, without feeling deprived. And of course, the biggest bonus is that you’ll save money! Here are some ideas!

Make Savings a Priority

An emergency fund is essential. It’s necessary for financial emergencies – and they always come up in some form or another. Treat it as any other bill each month. Place this, as every other bill, in your budget. You do have a budget, don’t you?

If you’d like, break it up into pay periods. In order to save $800 per month in a 2-income household, each partner would have to set aside $100 per week. A $400 goal would be just $50 per week. When a savings goal is broken into manageable pieces, it’s a far less daunting figure. Here’s a calculator to help.
When you’re unable to meet your savings goals, either find a way to make more money or spend less money each month. If you’re able to trim the fat from your monthly expenses, there will always be a way to meet your savings goals.
Budget your “fun money” as well. When you budget a set amount for unnecessary shopping trips and entertainment, you can’t shop until you drop. When the money runs out, you’re done.