7 Ways to Successfully Live Below Your Means

To live below your means is to spend less than you earn. Whatever your level of income; it's important that your lifestyle, and the money you spend maintaining it, aren't costing more than you earn. 

These tips will help you live below your means regardless of income level, and help you obtain a more secure financial future. 

Budgeting is key to living below your means, especially in the beginning. If you don’t know what money is coming in and going out or where it’s going, then you’ll have a hard time determining if you’re spending within your means or where to make adjustments.

1. Budget

If you don’t already have an emergency fund, that should be the first thing you focus on once you’ve built a budget.

2. Build an Emergency Fund

Keeping your debt-to-income ratio even lower is a great way to ensure you live below your means. Don't pay for things you can't afford on credit.

3. Avoid Debt

If living below your means is important to you, you must reevaluate your spending and bring it more in line with the realities of your income.

4. Reevaluate Your Spending

Another way to help you live below your means is to plan for big-ticket items. I’m speaking of the big-ticket items include cars, home repairs, travel expenses, and any other expenses you know will be coming up.

5. Plan for Big-Ticket Item