Good Morning DINKS. The secret to always having money is to spend less than we earn. More money has to be coming in from our income than it is going out from paying our expenses. I am a 31 year old professional who used to love spending money on nice things. Now I still spend money, but I am more careful about how (and on what) I choose to spend my money. I live on a budget because I want to save some of my money every month and not spend it all. I enjoy watching my bank account balances grow instead of watching my closets fill up with useless goods and my credit card balances getting bigger.
Living on a budget has limited my (once excessive) personal spending, but it has not totally eliminated all spending. I still go out for dinner with my friends for special occasions and I still buy new clothes when I need them. The key to living on a budget is to only go shopping when I need to buy something and to only go out for dinner with friends once a month or once every two months. When I tell my friends or coworkers that I don’t have money to go out for dinner or to go on vacation it doesn’t mean that I have $0 in my bank account, it just means that I don’t want to spend money unnecessarily. I no longer live pay check to pay check and therefore when I say that I don’t have money to do something it means that I live on a budget, it doesn’t mean that I am broke.
As a young professional with disposable income I choose to live on a budget so that I can control my spending and save for my retirement. I like to save money so that I can take a dream vacation one a year or once every two years. I don’t mind spending a lot of money if my purchase is worth the cost, I will never again spend a lot of money carelessly just because I want to go shopping. Living on a Budget ensures that I will never be broke. Living on a Budget is about saving money, controlling our spending, achieving our personal goals, and ensuring the stability of our financial future. Think about your last personal goal…Did you achieve it? Think about your budget last month…Did you stick to it?
How To Live on a Budget and Never Be Broke
- Shop on sale and splurge on investments. Focus on the long term and make sure that the benefit of your spending will be worth the cost. It’s ok to buy $200 winter boots if they are excellent quality boots and they are going to last for 5 years.
- Do not waste anything and don’t over consume. If we don’t need it to live comfortably, stay warm, or keep our belly full then the item is a luxury, not a necessity.
- Don’t spend money just because you have it. This is reckless behaviour and it will probably break your monthly budget quicker than you can afford.
- Never act broke. Choosing not to spend money is different than not having any money.
- Always be in control. Remember that we don’t let our money control us, we control our money.
Photo by Images of Money
Kristina Tahnyak
Tahnya is a Certified Financial Planner and former Investment Advisor turned marketing and communications professional She holds a degree from Concordia University, is debt free and currently works in the field of digital marketing.
Keep track all money that we spend will really help to control our expenses and understand our cash flow…thanks for sharing
I agree with everything you said. Couldn’t have said it better.
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