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 also known as living below your means.
Below, you'll find some great suggestions for living 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.
1. Have a slice of humble pie. 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.
2. 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!
3. Make savings a priority. Savings isn't optional. 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 workbook. You do have a budget workbook, don't you?
Your entire life doesn't need to change for living below your means. It's all about minimizing your expenses where possible and refusing the urge to live larger - even if you have the means to do so. By implementing these simple tips, you can slash hundreds of dollars - if not more - off your monthly bills and stash it into your savings account!