Live Below Your Means
Live ABOVE Your Means: Income < Expenses (Debt)
Live AT Your Means: Income = Expenses (Breakeven point)
Live BELOW Your Means: Income > Expenses (Savings)
What remains after all your financial decisions is reduced to the balance between income and expenses. Does your lifestyle exceed your means, equal your means, or fall short of your means? The math is very simple. If you spend more money than you earn, then you are living above your means and you will eventually fall further into debt. If you spend an equal amount of money to that which you earn, then you will continue to break even and live paycheck to paycheck. If you spend less money than you earn, then you will eventually accumulate savings. (What to do with those savings is discussed in the Investing 101 section).
KEY DECISION: Short Term Pain/Long Term Gain or Short Term Gain/Long Term Pain
Regardless of your financial history, you have the opportunity here and now to take control of your finances. The decision is yours: Would you rather sacrifice a bit now and build towards a solid financial future or be reckless now and scramble to catch up later when everyone else is retiring? We hope that you choose to live below your means now and set foot on the path to financial independence.