Expense Management - Live Below your Means

Growing up, Dave never had his heart broken over a toy he could no have. His parents made enough money to raise their children in a big house in the city, send them to good schools, and take them on vacations abroad. But by the time he was 24 and ready to settle down, Dave was besieged by worries that he would not be able to provide the same quality of life for his future family. When he told his father of his pan to get married, he gave only one advice: “Live within your means.”

This simple instruction has been guiding Dave and his wife Rowena’s marriage for the past ten years. Today, they are happy to note that they have been able to realize many of their plans, both small and grand, and are working their way to enjoying many more. “We have been able to travel together here and abroad, and reward ourselves with a few luxuries,” Rowena says. “My salary is quite small, but I have never had to borrow or touch our joint savings for the gifts I like to give my husband. We just bought a new car, and now we’re planning to expand our home. This summer we’ll have one of our yearly trips. Financially, we have been very lucky.”

Beyond the advice of Dave’s dad, the couple has actually been practising a relatively hot trend in personal finance management called “living below your means” or LBYM.

Here are the LBYM tips that you can start following right now:

• Set aside money for bill payments. Avoid getting into debt or paying penalty fees by paying past the bills’ due dates.
• Plan for major yearly expenses like insurance, car registration and tuition.
• Choose a good school near your house.
• Indulge in simple things. go for good, clean, fun, rent videos, cook together, play cards, even clean the house.
• Don’t give in to excess.
• Buy quality but affordable products.
• Don’t buy lunch; bring food from home.
• Plan ahead and be prepared for any emergency.
• Teach your kids about money.
• Make wise investments.
• Be prudent shoppers.

source: Good Housekeeping