Live Below Your Means

Live Below Your Means


To be able to save money, you have to spend less than you earn. It's that simple!


If Income = Expenses, then Savings = 0

If Income < Expenses, you'll eventually eat into your savings or go into debt.

But, if Income > Expenses, you have money free for savings or other "future you" uses.


I encourage my clients to remember their money mindset when they were a student. I don't suggest they eat nothing but instant ramen noodles, but to be conscious of how they spend their money. It's natural as we progress through our careers and start earning more money that our lifestyle ramps up to match that new income. This "lifestyle creep" can invisibly eat away at this new income.

Think over a big long-term financial commitment like leasing or buying a new vehicle, renting a more expensive apartment, or buying a home. You've been existing without this thing up until now. Do you really need it? Will the extra expense leave you strapped for cash flow? Would you be able to meet your new obligations if there was a hiccup with your health or job?

It's really helpful to keep your spending as low as possible compared to your income: it gives a lot of flexibility. If you want to take a risk like starting up a new business, having a family, or buying a home, it's very difficult if you're spending every dollar you make.

What could you accomplish by putting off this purchase for 6 months, a year, or more? Think about your big long-term goals: is your cash flow heading toward the things that matter most to you?

Drop me a line and we can discuss how to make sure that the way you're spending your money is being best allocated to the important things. I even know a money-saving trick or two!

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