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Top 10 Most Important Lessons to Learn in Personal Finance- #10

Wednesday, October 15, 2014

I try to as always incorporate new things that can spice up this financial blog such as including webinars of past posts through my Youtube channel (If you want to subscribe click here) and creating posts based on Filipino financial terms such as paluwagan and 5/6.

In addition to the above I decided to create a series posts and as a premier I will be posting the Top 10 Most Important Lessons to Learn in Personal Finance.

#10 Live Within Your Means

When I first had a taste of money on my own like having my first job and starting doing events, I became very blind on my expenses.

I juggle between my needs and wants and spend more than I could earn.

Lunch for 150 pesos a day, coffee in the famous Starbucks because I just want to feel cozy and write and buy makeups even if its out of my budget.
Aaaaahhhh....those memories. Looking back I may have saved a lot if only I live within my means.

Now living within your means doesn't mean limiting yourself just like how saving is not being selfish at all.

To live within your means is to have awareness of what you have and make you create an invisible boundary to what your current financial situation is. This includes limiting your expenses based on how much you truly earn and maximizing your savings for the betterment of your financial situation.

How You Can Live Within Your Means?

1. Know Your Financial Net Worth Now. Again this part is important for you to have a clear decision in your finances. Follow my post here where I guide you all about Financial Net Worth and its perks.

2. Calculate your hourly rate. How much do you get paid in an hour? Divide your Daily Rate to the number of hours you work. Once you have the value always think about that in your daily expenditure.

3. Have a Spending Plan. Budgets will as always be part of financial management for it traces where your money goes. Keep track on your expenses and research for a budgeting technique that will work for you.

4. Be a Smart Shopper. I have this post 5 Steps to become a Smart Shopper and Deal With Your Shopaholic Syndrome that you might want to read for you to understand better how to become wise in your shopping.

5. Always Pay in Your Cash. Debts are like sinkholes and the primary reason why people get in debt is because of credit cards. Allow yourself to pay in cash whether its the little thing or the big thing you purchase.

6. Don't try hard to impress the people around you. Remember that your life is different from them. Always go by the road of your own.

7. Cut Down on Expenses you Can Control. If you really want to live within your means then you have to sacrifice your wants in order to fulfill your needs.

8. Increase your Income. Either apply for a better paying job or do freelance work in order for you to adjust accordingly to your spending plan.

At some point living within your means may be have a negative connotation. It may sound like deprivation but to be honest, living within your means is not like that.

You just become more aware of the current situation and more creative in finding solutions to your problems. Remember that you can live within your means happily and successfully!

Watch out for the other 9 Lessons. Subscribe via RSS to be updated!!! :)


Be better in your finances. Save Now, Invest Now and walk your way to success. Sign up in my Email List and receive templates to get you started in your Financial Wealth. Follow me on Facebook and Twitter for better updates. Godbless
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