How living below your means allows you to thrive

If you’ve don’t know the phrase “live below your means”, then you’re missing a pretty crucial piece of financial wisdom.

Here’s the deal. Lots of us would love to have more money. And this isn’t about greed: more money in the bank can give us the breathing room we need to feel financially secure.

Which is not something to take lightly these days.

But having more money alone isn’t the key to that feeling. True financial freedom requires that we embrace a lifestyle where we don’t spend more than we bring in.

In other words, we live and spend “below” our means/income.

This way, there is always money left over when all is said and done. That difference is what helps us grow our wealth – whether we choose to save or reinvest that amount elsewhere.

Now, look. If your required expenses regularly exceed your means, then this advice alone won’t get you far. Math trumps all at the end of the day. We still need to make a certain amount of money to afford our lives. And budgets are not the solution to all financial troubles.

But no matter if you’re working hard towards that livable income or already make hundreds of thousands each year, the same rules apply. Your earnings number won’t make a difference if you regularly spend everything that you make.

So let’s keep that in mind going forward. Ultimately the ways we like to spend money – and the ways we aspire to in the future – shouldn’t ruin us. They should serve us in the best ways we can manage.