I Have a Secret

Pst. I know the secret to success. Well money success that is.

No you have to promise me, when I tell you this, you really listen, and don’t go telling everyone. It’s a secret.

Okay are you ready?

The secret to money success is….. LIVE BELOW YOUR MEANS!!

Oops sorry I shouted it, now everyone’s gonna know.

Oh were you expecting something complicated, maybe a stock pick or a tax trick? Nope sorry, just a simple money rule that far too many people don’t seem to know.

Living below your means is the biggest and most important piece of money advice I can give you. And it seems so simple but so many people struggle to live below their means.

So what does it mean to live below your means? It’s pretty easy to understand on paper. It simply means spending less than you make. Living on less than you make. You make $150 a weekend babysitting. Well then you would spend $150 or less a week. You make $5,000 a week, well you would spend $5,000 or less a week. Okay I want to make sure I am clear so let me give you one more example. You make $3 Million a year. Well you would have to spend $3 Million or less a year.

Why do I say or less, well because if you spend exactly what you make, you will be okay, but you wouldn’t have anything saved, so that’s why it’s LESS than you make.

Make $150 a week, spend $100. You will be okay. Make $3 Million, spend $1Million. You will be okay.

Far to often though people spend beyond their means. They spend more than they make and they go into debt to do it. Oftentimes it can be linked to a societal habit called keeping up with the Joneses. You buy more than you can afford because your neighbor, friend or stranger next to you bought something that looked nice and you wanted it to. You may even think you need it.

People also live beyond their means because of things that are not so much in their control. Medical bills, housing prices, or just not making enough money to survive. That is why I said it’s easy on paper. Living below your means makes perfect sense to almost everyone. Don’t spend more than you can afford, don’t go into debt for things you can’t pay for, and make enough money to pay for your day to day lifestyle. On paper it is easy.

In real life… not so much.

Many people struggle to live below their means because they don’t make enough money. There are ways to fix that and I challenge you to follow along to learn how. Other people struggle because they are trying so hard to keep up with the Joneses. They let society tell them what they should buy and they go into debt or overspend to do it. Other’s simply think they need to spend money they don’t have. Some fall for get rich quick schemes, some fall into bad luck or bad crowds. People get sucked into student loans, mortgages they can’t afford and car payments. The list goes on and on and on.

None of these things in and of themselves are going to guarantee you fail financially. But I can guarantee this. If you can manage to work hard and make a conscious decision to live within your means, you will succeed financially.

I am not promising you a mansion with a view but I am promising you will be okay.

If you can make a living wage, save a chunk of your income for retirement and emergencies and manage to not spend any more than you have. You will be okay financially.

Living below your means seems simple, and it is, but it’s not easy. It takes a conscious effort and it takes the willingness to find contentment within yourself and what you already have. If you can start young, which I hope is you, then you are already miles ahead of everyone else. And if you are reading this, thinking you are one of those who has struggled to live below their means. I am here to tell you, it’s not too late to turn things around. If you have already lived above your means, you may need to take some time to clean things up. I can show you how to get out of debt, how to start savings, how to make the changes needed. But it starts today. Start living below your means right now. Know what you make, know what you need to save, and don’t spend more than you can afford.

That’s it. That’s my big secret. I wish it was more exciting than that.

If there is one thing you learn about money, I hope it is this. If there is one thing you learn to practice with your money. I hope it is this.

Earn more- Spend less- invest the difference.