Living Just Within Your Means
The expression, “to live within your means” gets thrown around a lot, but what does it really mean?
If your “means” is your income, then it could encompass everyone from people just getting by each month, to those who have substantial savings.
The first group we often call those that “live paycheck to paycheck.” Their entire earnings goes right out the door each month to cover their bills. Without any wiggle room for unexpected expenses, they are at risk for going into debt every month.
What would it mean for the paycheck to paycheck group to live below their means?
They would have that extra bit each month to save. From building an emergency fund, to saving up for a car or other large expense, it really turns the tables on their economic situation.
“Well of course I want that, but I have no extra room in the budget. I’ve already cut out everything!” [Read more...]