8 Tips to Start Living Below Your Means

Due to everything happening right now, I am in complete savings mode.

And it seems like most of the world is right there with me.

According to Business Insider, 64% of Americans are changing the way they spend and save their money due to the pandemic.

Now more than ever, we want to find ways to spend less, so that we can build up our emergency fund and have less anxiety around money.

We’re already all cooped up and stressed out, why not try to eliminate some of the financial stress?

Here are ways that you can increase the gap between your income and your expenses and live below your means, so you’re prepared for when life hits ya.

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Set Up a Budget Calendar

There are tons of different ways to go about this.

If you are looking for a daily and monthly calendar, I have some free printables here for you to use!

Pen and Paper Monthly Calendars

If you’re a visual person who loves putting pen to paper, then a printable monthly calendar is probably the way to go! 

Using the highlighter method and a monthly calendar is one of my favorite ways to do this, if you like to budget by paycheck! 

Here are free monthly calendar print outs for you to get started!

I like to write out all of our bills, paydays, special events, etc on these so that we can visualize the month ahead and plan accordingly!

But what if you want a calendar on your phone?

Google Calendar

Now more than ever my life revolves around my google calendar.

If it’s not on there, I don’t know it’s happening.

Because of this, I decided a while ago to put all of my fixed expenses on my calendar to remind me of when they are due.

This decision was LIFE CHANGING!

Especially for the non-monthly bills like Amazon Prime that I inevitably forget about every year.

So now, instead of sitting there wondering when something might be due, I can look it up at any time in my Google Calendar

This method works much better for me than pen and paper because I ALWAYS have my phone.

I don’t always carry a planner around everywhere with me. 

Avoid Lifestyle Inflation

Lifestyle inflation is what tends to happen when people get a raise and then they promptly increase their spending.

This can make it really hard to save money and get out of debt. 

I am a great example of this. 

Two years ago, my partner and I lived in a 500 sq ft apartment with no dishwasher, no central AC, and no washer and dryer in-unit. 

Last year, when both of us had higher paying jobs, we upgraded to a slightly larger apartment that included all of the things that we were missing before.

(hello dishwasher and goodbye hand-washing)

We made do in the first apartment, but now that we have experienced the luxuries of central AC and a washer and dryer, we swear we could never go without.

This, my friends, is lifestyle inflation.

Here are some ways to avoid this so that you can save money and become debt free:

Don’t upgrade your living situation just because you come across some more money

It can be tempting to snag that bigger apartment, or take a luxe vacay when you get a promotion or a big tax return.

Don’t get me wrong…

Sometimes upgrading is necessary! 

Maybe you decide to start a family, and that small studio apartment just isn’t realistic anymore.

But often we think that just because we have the money, we should upgrade.

Take a long look at what you really need to be happy and feel content in life.

Only upgrade when it really makes sense to accommodate changes to your life, not to match your new income.

Keep Your Expenses Steady

This is similar to the last point…

…you don’t need to add subscriptions or other expenses just because you have the money.

Again, it’s all about evaluating what you truly need to be happy and feel comfortable.

If a Hulu subscription is really something you want, go for it!

But try to avoid adding subscriptions that sound great in theory but don’t actually add value to your life.

This way, you can put all of that extra money toward saving for a nicer vacation, an emergency fund, or paying off those student loans.

Don’t Compare Yourself to Others

Okay I will admit, I am SO guilty of this.

It’s so easy to compare yourself to others when you are only seeing the highlights of their lives on social media.

It can really contribute to FOMO.

Just remember, you don’t know the full story.

It make look like you are living similar lives to someone who has way less debt and way more savings than you.

But what you don’t know is the privileges they have, the help they’ve come across, and the journey they took to get to where they are.

I truly believe it is so important to fill your social media with people who you can relate to and who are struggling with similar things.

Find people who are genuine and honest about the not-so-glamorous parts of their lives.

They will help you to remember that no one’s life is perfect.

Automate Your Savings

This is a BIG one.

Especially if you are someone who can’t resist the urge to spend money if you can physically see it.

Here are some savings recommendations I have to help you live below your means.

Put it in a separate bank

This is a mistake I made for A LONG TIME.

I had my checking and savings account at the same bank.

With one touch of a button I could transfer back and forth.

Do you know what this lead to?

Absolutely NO money in my savings…

Every time that I would transfer money to my savings, shortly after it went right back out

I know that you know the feeling, right?

We’ve all been there.

Do yourself a favor and make a savings account at a different bank!

If you automatically have a certain amount from every paycheck go in there, you will probably forget it exists most of the time and be less tempted to touch it.

Don’t have a card hooked up to that savings account

Obviously you will want to check periodically just to make sure nothing crazy is going on with the account.

But your future self will thank you for not having a super convenient way to access that money.

Moral of the story, leave that money alone.

Don’t Overpay For Items

Let me repeat this….

Do

Not

Overpay

For

Items

Here are some apps and extensions that make it super easy to get the best deals.

Ibotta

I love Ibotta.

I discovered it in college and it is so easy to use! 

You can plan deals on the app before going grocery shopping…

But let’s be honest, ain’t nobody got time for that.

Just scan your receipts after, and see if you saved anything! 

Chances are they had a deal or two that you didn’t know about.

And this requires approximately 15 seconds of your time.

Fetch Rewards

Very similar concept

I use Fetch tons because you can hook up your email and they will scan for deals from your online purchases.

We use Amazon and Instacart for most of our purchases, so this saves us tons of money.

Plus, you get points just for scanning receipts! 

And they do all of the work for you, really.

Honey

This is a browser extension, not an app, but it is still awesome!

If you have watched any youtube video ever, chances are you’ve heard of it

I was skeptical honestly.

It took me a while to download this.

And honestly, I wish I would have sooner.

Honey saved me money instantly.

They even review Amazon prices to show you if there has been any recent increase in price for the item you are looking at.

So you know if the item is jacked up in price right now.

You just download it once and let it do the rest.

It’s what Retail Me Not wishes it was…

…because these coupons actually work

Rakuten (Formally, eBates)

This is also a browser extension like honey.

But instead of coupons, with Rakuten you get cash back.

This is great to download and have running in the background.

If there are any deals on the site that you’re on, this will pop up letting you know!

Again, free money.

Need I say more?

Be Honest About Your Credit Cards

If you’ve been here before, you may know that I actually LOVE credit cards.

And this is coming from someone who racked up 20k in credit card debt…

Now that I know how to use them, and I never carry a balance, they have saved me tons of money.

But you need to be honest with yourself…

Are you carrying a balance right now?

If so, you aren’t benefitting from credit cards.

The credit card company is benefitting from you. 

However, if you can resist the urge to overspend, there are great rewards associated with opening new cards 

Give Yourself Fun Money

I know that this sounds counterintuitive to saving money…

…just stick with me

Giving yourself some fun money to spend on whatever you want prevents you from feeling restricted.

And when you don’t feel restricted you are: 

1. More likely to stick with budgeting for the long term
2. Less likely to go splurge on something with no regard to if you can afford it or not

Saving up for a big splurge?

Or spending it on a weekly/monthly basis?

Whatever you want!

It’s your money.

I have a “Treat Yo’ Self” category in my budget with YNAB.

Sometimes I use all of it that month…

Sometimes I save up for a bigger purchase.

But it’s awesome to know that it’s there.

So then when I go to buy something, I can look at my budget and decide if I REALLY want to spend my fun money on that.

Puts things into perspective, ya know?

All of these are great ways for you to live below your means, so that you can pay off more debt and save more money.

You can adjust these tips and tricks to fit your lifestyle.

Just decide what works best for you!