10 Ways to Live Below Your Means

I have been working my ass of for these past few years and I haven’t seen any improvement in my finances yet. Though I have made some pretty nasty liquid investments that suffice my creative juices, my tangible assets are more far than becoming ‘very solid’. Ergo, 2011, is a start.

A penny saved is a penny earned.
– Benjamin Franklin

As you may realize, saving money is one of those tasks that is easier said than done. There’s more to it than spending less money.

Ringgit Malaysia

Malaysian Ringgit

To properly manage money, you must know how much money you will save, where you will put it, and how can you make sure it stays there? I’ve done some some realization, and I have ten things in my mind:

Redefine your definition of ‘rich’

Your definition of being rich shouldn’t be having the most expensive electronic gadget, but having enough money to meet your own’s basic needs – food, shelter and clothing, a few of your thrifty wants and be able to share some to others.

Borrow and share

It’s a win-win situation! Rather than buying a DVD, why not share your videos to others. It is cheaper than going to the cinemas.

Avoid shopping malls

When you go to the mall, you usually end up spending money. If you need clothes, go to shops offering brand names at a discount. You can save a lot of money by being a smart shopper and not paying the retail.

Buy cash

You can’t spend money you don’t have. Many bank accounts provide overdraft protection, so even with a debit card, it is easy to go over your account balance.

Find a better deal and save the difference

Think how much you can save when you switch companies for price savings, like mobile carrier providers, internet access, credit cards, etc.

Stick to a long-term investment strategy

Spread your investment over a several mutual funds, and a few individual stocks. Each one must be carefully chosen after thorough research. These stocks and funds are your best bet in growing your money long term.

Stay healthy! medical problems drain bank accounts

If you look at all the risk factors for dying, the one that is most predictive is fitness level. By increasing your aerobic efficiency, you can roll back your biological clock- age.

Prepare yourself for rainy days

Even when things are going great, you must always be prepared for a change. If you set yourself up properly, when things to take a turn for the worse, you will be prepared to handle it.

Avoid impulse buying

Buy things you truly need. New things are exciting but the novelty passes by quickly and becomes just another item.

Time is money

Manage your time properly. Focus on tasks that give you the absolute most return on your time investment, and you will become more productive and have less to do so.

One thought on “10 Ways to Live Below Your Means

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s