12 EASY Ways to Live Below Your Means and Save More

How to live below your means and save more.

My Favorite Personal Finance Books

Chapters

00:00 Start Here
00:28 Focus More On What You Spend, Rather Than What You Make
01:26 Start Viewing Money As Time
02:19 Know Your Numbers
02:58 Know When More Doesn’t Make You Happier
03:46 Treat Treats As Treats
04:25 Be Weird
05:00 Think More
05:39 Surround Yourself With Like Minded People
06:20 Take Advantage of All The Free Things In The World
06:53 Spend Your Own Money…Instead of the Bank’s
07:52 Stop Seeking External Validation
08:36 Increase Your Income

The key to a good financial life is simply spending less than you earn and this concept is called, "Living below your means." In this video, I share 12 ways you can live below your means and save more money.

1. Focus More On What You Spend, Rather Than What You Make

A huge financial mistake people make is focusing more on what they are making instead of what they are spending. We don't have much control over how much we make, but we do have a lot of control over how much we spend. If you focus on what you're spending you can make more progress financially.

2. Start Viewing Money As Time

Money is just a representation of time. Whenever you are about to spend money, ask yourself the question, "Is this item worth the effort it took to make the money?" When you ask yourself that question, you will naturally spend less.

3. Know Your Numbers

Another key to a good financial life is creating a budget and tracking your expenses. In addition to doing this, it is important to know certain numbers off the top of your head like your income, fixed expenses, discretionary spending, checking account balance, and saving account balance.

4. Know When More Doesn’t Make You Happier

Spending more money can increase your happiness, but only up to a certain point. It is important to know when "more" no longer increases your happiness and stop spending money at that point.

5. Treat Treats As Treats

More stops increasing your happiness when it goes from being a treat to being normal. It is important to treat treats as treats and only do special things on occasion.

6. Be Weird

Dave Ramsey once said, "Be weird or be broke." You can be normal, live above your means, and have financial problems. Or you can be weird, live below your means, and have a good relationship with money.

7. Think More

The reason many people overspend is simply because they are not thinking. If you are frugal and live your life more intentionally, you will naturally spend less money.

8. Surround Yourself With Like Minded People

You are who you surround yourself with and if you surround yourself with materialistic people, you will become a materialistic person. But if you surround yourself with frugal people who spend less, you will do the same.

9. Take Advantage of All The Free Things In The World

There are so many free things in this world and if you take advantage of them, you can live a rich life without spending money.

10. Spend Your Own Money…Instead of the Bank’s

People often spend money wastefully when they spend the banks money in the form of credit. It is important to be in the habit of spending your own money because you naturally respect it more.

11. Stop Seeking External Validation

I believe that many people dig themselves in a bad financial hole because they want external validation from others. The truth is that nobody cares about your possessions, so don't get things to impress others.

12. Increase Your Income

Although this is not easy, increasing your income is the easiest way to live below your means and save more because the more you make, the more you have to work with.

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[JoshFerguson-ydgn]

1.) Buy only what you need and if something needs replaced
2.) Save and invest your money
3.) Live a simple, frugal, and modest lifestyle
4.) Shop your home, pantry, closet, and library
5.) Be mindful of what you spend
6.) Budget

You also don't need to buy top of the line products. A simple washer, dryer, refrigerator, stove, or motor vehicle. They'll work just as well as products that you overspend on.

[donaldwess]

An investment in knowledge pays the best interest."

[CundaliniWantsHisHandBack]

Number 4 (more doesn't make you happier) is one of the most sobering things I've heard in long time.

[cloudyblaze]

I first learned these principles from the Richest Man in Babylon. I've been living below my means for some time and investing the excess in the stock market. I have about $60k now, but I believe I'm not maximising my profits considering the current market dynamics where people are making a lot from the market.

[nicolasbenson]

Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them. Well, at least my advisor does too, jokingly.

[stewarthoi]

#11 external validation is the most significant money eater. If one can just stop caring about how other people may look at what you own and how you spend, that will be so liberating financially, emotionally and spiritually. I personally know so many people who have spent so much money on things simply to show others that they've "made it".

[djrickyb]

"Not thinking" getting yourself into a bad situation is true! I worked a 12 hour shift last Monday over night. I was coming home at 5:20 a.m. and I was not paying attention or THINKING because I was super tired while backing my 2019 Toyota Camry into my yard. I hit my fence pole on the left hand side of the rear bumper and also got two big scratches in the panel above that. Been parking in my yard for 16 years, and this is the first time I have touched the fence pole. Caused an estimated $2450 in damage. I am paying it out of pocket because I don't want my insurance rate to increase. Car will be ready in about 12 days or so. Sucks. Hard lesson to THINK and pay attention to what I am doing at all times

[Revert]

I was a spending addict most of my life. I started my debt free journey about 3 years ago. Now…I am really good at living below my means. I have people working on my fence today. I e needed to furnish lunch. I had Gatorade powder and ice so I loaded an igloo cooler with blue Gatorade. Then, I made pizza from scratch using all the leftovers in my fridge. Then, my dad gave me lettuce from him garden and i made a salad. I fed 6 people for about $5. 3 years ago, I would have spent $100 going to the fast food place and brining back burgers. I love learning ways to live below my means.

[LearnGermanwithMarzipanfrau]

Thinking of money as time helps me to spend less. <3

[human-capital-]

Here are the ways that I am weird:

1. I gift and swap unwanted items with my friends instead of buying gifts.
2. I shop at grocery salvages and thrift stores for the thrill of discovery.
3. I alter and sew my thrifted clothing to personalize it.
4. I drive a totaled car and pay almost nothing for insurance.
5. I vacation at my friends' homes.
6. I enjoy my yard and started gardening for fun.
7. I stream media instead of buying copies.
8. When in doubt, I Iet go of things, expectations and people as needed.
9. We cook almost every day.
10. I actively plan ways to be even weirder.

[Doracox]

I started stacking to SAVE wealth. I've always been the type of person to spend my entire paycheck. I hate having money just sit in the bank. I am under pressure to grow my reserve of $950k. before I turn 60, I would appreciate any advice on potential investments.

[conorpaulpurcell]

100k subs. Been with u since 5. Dublin, Ireland.

[lina_mityukova]

I spent 7 dollars on a cabbage slicer, and it helped me save so much time on cooking! Before I bought it, I thought it would be a waste of money, but now I realize how wrong I was. So it was a perfect investment 😁

[byanchanggeorge]

No 8. Down to earth... Empty we came, empty we will return.❤

[GigaChad_]

It’s hard finding people who live below their means to befriend. Most people are hooked deeply into The Matrix😅

[jmobrawler]

What stood out to me & what I least expected was who you surround yourself with. It makes sense why that would impact your savings rate, spending habits and your overall mindset about money.

[Coffeaddictedcinephile]

My side hustle is collecting cans and taking them to the bottle deposit

[TheBodrey]

It's amazing how many people simply don't understand the concept of living below their means. It seems like most people are laser-focused on spending every penny they make and then some because they're either trying to maintain a lifestyle they can't afford (because they DESERVE to, don't you know) or they just simply can't control their spending, or both. Also, some people are so concerned with impressing people with their overpriced, depreciating assets (i.e. BMW/Mercedes) that's costing them $1K+ per month. Newsflash: NOBODY cares what you're driving - nobody envies the fact that you're financed up the wazoo with auto payments. People like that need to get over themselves.

[Dorispl]

Thank you for all ideas and inspiration. I live below my means and save. I'm weird but I love it. I spend on things I value, travels, concerts, experiences and gifts

[eddiestilll]

These messages are so powerful! Mucho gracias El Agustin! :) I especially love "Focus More On What You Spend, Rather Than What You Make".