Saving Money: Live Within Your Means but Below is Better

When it comes to money, you want to live within your means but below is better.

Basically, if you can save some money every month, do it!

You need that extra money for an emergency account. If you don't have an emergency account, make that a goal. Emergency accounts are for just that, emergencies. All those fun little expenses that no one wants to have to pay for but have saved the money to do so if need be - like home repairs, car repairs or medical or dental bills.

So, to at least stay within your means you need to have a budget. Basically, you take the amount of income you have coming in every month and subtract all of your expenses and hope that you have money left over to put into an emergency account.

When creating your budget, you need to add up all your monthly expenses such as but not limited to:

house payment or rent
electric bill
gas bill
water bill
car insurance (if you pay bi-yearly, divide by six for monthly payment)
home insurance (if you pay yearly, divide by 12 for monthly payment)
car payment (if you have one but hopefully you don't)
student loans (if you have any but hopefully you don't)
food expenses
car expenses such as gas and maintenance and/or other transportation costs
basic needs (like toilet paper, shampoo, soap, cleaning products, etc....)
property taxes (paid yearly, divide by 12 for monthly payment)
cell phone bill and/or other phone bill
any television services like cable or any streaming services

Above are just some examples of some of the monthly things you may need to take into account when creating a budget but a person's budget will vary from individual to individual.

If your expenses exceed the amount of income you have coming in, you need to either cut back on your expenses or generate more income.

If you need to save more money and are not doing things like clipping coupons, meal planning, doing DIY, etc..... it's time to start.

You may also need to really consider where you live. If the cost of where you live is too high, moving may be the best option while getting your finances in order. Moving is a pain but having financial freedom is priceless.