“Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty-pound ought and six, result misery.”
Living below your means or (LBYM) is not a sexy headline. It is safe to say it is pretty much the opposite of sexy. However, it is one of the most fundamental and most important concepts to grasp in personal finance. If you ran a business and consistently showed expenses that were greater then income month after month you would eventually run that business into the ground. No one that is rational would keep a business like this running because it would be costing them money every month. The same thought process should be applied to your personal finances, this is obviously easier said than done.
Continue reading LBYM: LIVE BELOW YOUR MEANS
One of life’s basic needs is shelter. Everyone needs a roof over their head and a secure place to store their possessions when they leave. Without this fundamental building block, life is a constant battle. So no matter what your current living situation is, be grateful you have a roof over your head as many do not. In this article, we will look into ways you can keep your living expenses down so you can focus on saving more money and having fun with your hard earned dollars.
“Experts” say you should spend no more than 30% of your income on housing costs. This is a good starting point, but there is so much more to the story. In a recent article in The Denver Post, they stated, “One in every four Colorado renters is spending more than 50 percent of their income on housing”. Ouch, that is the reality of what is happening in many major markets across the country. Rents are moving up fast, but wages are lagging.
Continue reading KEEP YOUR HOUSING COSTS LOW TO GET AHEAD