Throughout my life, I’ve often heard the phrase “live within your means”. For the life of me, I can’t remember where I keep hearing this saying. I can only assume it’s from my parents, who always seemed obsessed to hammer home just how important it is to spend less than you earn.
First Hand Experience
And with good cause! I’ve witnessed first hand, from a very young age, the effects of spending money you don’t have. For years and years, one of my family members would buy lavish and unhealthy things on their credit card. Vacations, booze, cigarettes, clothes, you name it. They got into so much trouble with money they actually ended up stealing from not only my parents, but even my brother and I. The ensuing arguments this caused in our household will certainly stay with me and I’m pretty certain it’s part of the reason I am so careful with money. Thankfully, they came out the other side, are doing much better and the rift this caused in our family is completely healed. Maybe I should feel appreciative that this, albeit negative experience, kickstarted my interest into the world of personal finance? Anyway, I digress.
I’m sure you’ve all heard the phrase to live within your means, after all, it’s basically the staple of any personal finance goals. If you aren’t living with your means, at best you’re certainly not saving any money and at worst you’re going further and further into debt.
So let’s assume you are already living within your means. Congratulations, give yourself a pat on the back, crack open a beer and bask in the knowledge that you are a responsible adult. Responsible, sure, but not exactly meeting your ultimate potential. [Read more…] about Live Within Your Means, Then Below Them, Then Expand Them