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.
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.
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.