Saving money consistently is the key to successfully living on cash and staying out of debt. Living beneath your means allows you to save additional money. You will discover thousands of tips and strategies to cut costs and live well on a reduced budget once you start looking for them.
However, utilizing these tips and strategies often sounds like a lot of planning and work. To be honest, it is. But consider this, there are only two ways to create wealth: you either invest money or you invest labor which includes your time and intellect. Until you can accumulate a substantial amount of money to work for you, you will have to invest your labor to free up money for saving.
The time and labor you invest to cut your expenses is well rewarded. Reducing expenses is a more efficient means of adding money to savings than increasing income. Therefore, it is a more efficient use of your labor. One dollar added to savings by living beneath your means is equivalent to earning an additional $ 1.35 to $ 1.50 of income, because after payroll deductions, it takes $ 1.35 to $ 1.50 of additional income to realize an extra $ 1.00 of disposable income for most people.
You don’t have to implement every money saving tip or strategy you encounter. You don’t have to be perfect in your execution, either. Anything you do to reduce expenses will free up money for saving. However, once you start thinking accumulation instead of consumption, you will seek out more and more ways to stretch your dollars. You will soon find that it is easier to live beneath your means than you ever thought. It is the change in attitude toward convenience and spending in general that is the hardest to accomplish.
Copyright 2010 K.C. Knouse
K. C. Knouse is the author of True Prosperity: Your Guide to a Cash-Based Lifestyle, Double-Dome Publications, 224 pages