Monday, April 27, 2009

10 Tips To Live Below Your Means

Here are ten simple tips to follow that will help you live below your Means:

1. Stop trying to keep up with the Jones. The Jones are not rich. They just look rich because they have material possessions. Remember to ask yourself: Do you want to be rich, or just look rich?

2. Stay out of the mall. You can not spend money if you don't hang around in stores.

3. Don't pay any attention to marketing or ads. Companies spend a great deal in advertising to learn how to get your money.

4. Never buy anything at the retail price. Always use the internet to find the best price on a good or service and buy used when you can.

5. Stay healthy. If you stay healthy you will reduce your chance of losing your money to medical bills. Exercise, watch what you eat, and see your doctor for check-ups often.

6. Focus on investing for the long term. Don't pay any attention to what the stock market is doing today. Set your asset allocation and readjust it once or twice per year based on your goals, age, and risk tolerance.

7. Stay away from bad debt. Most people need credit for college or a house, but stay away from credit cards. The are a sure way of keeping you from reaching your financial goals.

8. Stay home and relax. You don't always have to take a big vacation to relax. Travel is stressful with how airports are managed today. Stay home and enjoy what your local area has to offer.

9. Learn what true wealth is. Wealth is not found in material possessions. Wealth is a figure that will allow you to live without having to earn any additional income. It is a distance between you and poverty.

10. Avoid impulse purchases. It is a quick rush of adrenaline to make impulse purchases. That adrenaline lapses, however, and you are left with just another item you have to pay for. Try to stick to buying what your need.

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