Living Within Your Means
Val Mosley gives great tips on how to live comfortably within your financial means to create more freedom and happiness in your life. Offering one of her favorite phrases, ‘Be Happy, Be Bright, Be You!’ Val says, “It’s all about being authentically you.”
People who live beyond their financial means are trying to meet the expectations of others, which prevents them from being authentically who they are.
Living Within Your Means involves creating reserve savings that can cover your vital expenses for three to six months, in the event of an unexpected job loss or illness.
Banks know this and keep a reserve against loans that they’ve given, in case those loans don’t pay off and go into default. Insurance companies know that not everyone who pays for insurance is ever going to actually make a claim; however, they make certain to have extra reserves in order to pay any claims that are made.
Val discusses ways you can create reserve savings:
1. Divide your yearly expenses by twelve to get your monthly costs, and then compare that to your monthly income. Make sure you’re spending no more than 30% of your income on housing.
2. Compare your wants to your actual needs. Do you really need the latest style? Second-hand stores often have last year’s fashions at great bargains.
3. Have a portion of your monthly pay direct-deposited into a savings account so that you are not tempted to spend it.
4. In some cases, you really do get what you pay for, and paying for a quality name brand may be a good idea so you won’t later have to repurchase that lesser name brand item.
Be authentically you; comfortable in your own body and your own financial skin.