A Simple Guide To Living Below Your Means

I’ll be the first to admit that I wasn’t great with money. I thought I was until I blew through most of my earnings and savings over a three-year period without realizing it. But I changed. I figured out, through research plus loads of trial and error, how to live frugally. In this simple guide to living below your means, I’ll help you understand how to gain control of your finances without being miserable or deprived.

Much of what I learned that has helped transform my understanding of money can be attributed to Dave Ramsey’s advice. I attest to his Baby Steps system for financial freedom because it helped me develop a healthier relationship with money.

Intentionality is at the forefront of financial security, and it’s easy to be more thoughtful about money when you detach it from your feelings.

Impulsive purchases have to go so that your mind and body get used to the idea of making smart financial decisions and not emotional financial decisions.

This is one of the reasons why I love minimalism. Removing myself from the constant acquisition of things has allowed me to gain control over my life and finances. I can live below my means because it’s now a choice, even if it technically isn’t.

Frugal Tips That Worked For Me

1. Budget every dollar

Using pen and paper, breakdown where every dollar of your monthly earnings will go. There are five categories in which your money should be assigned, and they are, in order of importance, as follows:

Bills and debt
Food and health
Travel expenses
Savings
Consumables

Usually, my living expenses are about the same every month, as are my travel expenses. Food and health may vary from time to time, but there’s an average that I can work with.

Once I’m done budgeting the first 3 categories, I choose to divide the rest of my money among savings and consumables. Some months I save up to 80% of whatever money is left from my budget; other months I save about 30% of the remaining money.

As long as I’m following this budget plan, I don’t mess up my finances.

Most importantly, I’m not putting myself in debt or sabotaging my future without saving or investing.

2. Indulge in experiences over consumption

Prior to 2023, I wired my brain to seek dopamine from buying stuff and eating out.

The effects of this behavior could be seen on my bank account and my body.

I was burning through my earnings and packing on the pounds month after month. As my weight increased, so did the need for new clothes that fit. Due to my unhappiness over my physical state, I’d indulge in more food to comfort myself.

It was a toxic cycle of consumption and cheap dopamine.

Since then, I’ve changed my behavior.

Rather than buying my way to happiness, I earn it through effort, passion, and experiences.

When I’m looking for dopamine, I write, film videos, spend time with loved ones, or play a sport.

When I’m unhappy with how I look, I focus on small physical goals of improvement rather than fancy outfits and shoes.

It’s difficult at first, but as you remain consistent, joy and happiness come from everyday life rather than the pursuit of material items.

I own and purchase less stuff now, but I’m happier and healthier than I’ve been in years.

3. Shop at local stores

I used to like the convenience of ordering groceries, toiletries, and other items online. I liked having these items delivered to me as well.

One time per month is fine.

But I was doing this every week, sometimes twice or three times per week.

The dollars added up, and the delivery fees started to exceed travel costs.

I don’t partake in this anymore.

Instead, I purchase in bulk and from local shops and farmers markets.

Food items are sold cheaper in bulk, and they last longer due to the sheer volume per purchase.

Also, prices are competitive since local stores and farmer’s markets are trying to compete with bigger retail stores.

4. Buy salvaged and pre-owned goods

My friend and I were both on the market for a laptop.

We searched for a while and finally found laptops we liked.

Ironically, they were the same make, model, and specs, barring the amount of RAM.

Guess what? I paid almost 35% less than he did.

How did I get such a saving? Well, I found a deal at a local pre-owned store.

The laptop was in pristine condition. It still had the protective plastic on it, and the warranty was still intact.

I negotiated with the manager and worked out a deal to increase how much I saved from 25% to 35%. Even without negotiating, I’d still have gotten a good deal.

I’m using that laptop to write this article right now.

All I did differently was take some time to search through salvage and pre-owned stores.

Deals like this are available all the time, even on the Facebook marketplace.

When I was a gamer, I would wait until December or January for Sony’s sale. I’d save up to 40% on games or subscription packages. It wouldn’t be a marketing ploy because I would keep a note of the normal prices throughout the year.

This taught me that you can still get the things you want while living below your means.

You just have to be resourceful, patient, and willing to trade the novelty of a brand new item for a well-loved, pre-owned item.

That’s what worked for me, and I get to enjoy the items I actually want without breaking the bank.

This basically summarizes everything I know about how to live below your means. I’m always learning and looking for new ways to be frugal, so I’m sure I’ll add or adjust my behavior over time. But for the most part, this system works, and I’m living happier than I did before. I hope that by following this guide on living below your means, you can gain control of your finances and actually get everything you really want when the time is right.