Living within My Means
Correspondent | Monday May 4, 2015 14:46
Does this mean he has to be tight-fisted with his money? Modise is usually a generous man, who likes to share what he has. The idea that he now needs to be mean; stingy to his friends and family, skimp with his own needs and desires is not appealing. Is this what it really means? Luckily, no, this is not what it is about. Simply put, ‘living within your means’ is saying to yourself that: “if I can not afford to buy something now, then I must wait (perhaps save my money!) until I can afford it.” If you did decide to buy it anyway through other means, you would be living beyond your means, not within them. It means never spending more than you can afford, and never borrowing money to buy things that should be paid for from your income.
What if I get a pay rise?
If you are one of the lucky ones to have received a pay rise, it is now vital that you manage your money properly. Just because you have more money each month, does not necessarily mean you will be wealthier. You must plan how you are going to spend the extra money each month, or even better, perhaps you can use it to pay off your debts quicker, get back in control of your money and start saving.
Do not use the extra money in your pay packet to purchase an item on credit. Remember: borrowing money makes your ‘future self’ poorer. Use your extra wealth to make you richer. Now is the time to be wise.
How can you make sure you
stay “within your means?”
The best way to work out what you can afford is to budget your money by planning your monthly income and expenditure.
“Remember It is important to keep coming back to the basics with your money”
When you plan your money, you must take account of every responsibility you have. Start by writing down your income, and then all your expenses, making sure you have enough money for all your commitments.
Once you have prioritised your commitments, making sure all your needs have been met, then (and only then) can you spoil yourself with the luxuries you want to stay happy.
How will I know what is
Luxury vs. a Necessity?
The financial commitments that you are responsible for - in order for your life and that of your family and children to be safe, housed, healthy and educated; fed and clothed, are items of necessity. Make sure you can afford them!
The luxury items are your extra expenses that you could live without - if you did not have the money. These are things such as treats, eating out, new phones, social events, cars, holidays, etc.
Savings and Insurance
Savings and Insurance are very important in our financial lives. They are not considered luxuries, but necessary expenses in our daily lives and must take priority over frivolous spending.
If you get lost along the way, start your plan again, and then commit yourself to the goal of “living within your means”.
It is as simple as this –
- “Plan Your Budget – Live Within your Means
- Manage your Debts - Do not Get into More Debt
- Be a Smart Shopper
- Protect your Assets and your Loved Ones
- Plan for your Future
Now is the best time to start living within your means!
Your financial wellness is up to you. Follow these simple life rules, and be comfortable and happy with your money.
If I was in your shoes, I would Start Today!
Author: Oarabile Tuelo – Debt Counselling and Collections Manager with S.C.I. Training (Pty) Ltd. © S.C.I. Training began as a BQA accredited training institution specialising in Financial Education.
We now also offer Debt Collecting services for companies with bad debtors and Debt Counselling services for those in financial distress. For help and information contact them on 3180243 or 75797242 or rabbie@wellness.co.bw.
* Names in this article have been changed