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10 Good Changes During My One-Year Experiment Of “Living Below My Means”

10 Good Changes During My One-Year Experiment Of “Living Below My Means”

Living above your means is something that people do all the time. The enjoyment of getting things when you can’t afford them is what drives the credit card and loan industry. Unfortunately, there is also the absolutely infuriating side effect of being in serious debt all the time and that means you may have to live below your means for a while. I experienced this recently and actually some positive things happened. Here are some good changes I experienced by living below my means.

1. I started eating better

The first thing I gave up when I decided to live below my means is fast food and restaurants. It sucked at first because that food is undeniably delicious but after a while I got used to cooking all of my meals at home. Truth be told, I started eating better. My local grocer has 2.5lb bags of frozen vegetables for $2 each. A few bags of those and now I have veggies with every meal.

You wouldn’t think it but you can actually eat pretty well on a serious budget. Rice, noodles, pasta sauce, veggies, and other assorted items come pretty cheap and when you load up on everything, you can have very cheap meals that are pretty decent. I went from eating $200 worth of Taco Bell, Subway, and Chipotle every month along with groceries to spending $150 on only groceries and eating fresh cooked meat, veggies, and noodles that I make and season myself. That also allows me to control my sodium, fat, and calorie intake better!

2. I have become an eBay expert

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live below your means

    I am a technology buff which gets really expensive after a while. I like having a nice laptop, nice desktop, a nice phone, and a tablet. Unfortunately those things go for hundreds and sometimes thousands of dollars. Thus, I have learned the ancient art of bargain shopping. I don’t get the very latest in technology but I built a desktop computer for $900 that can render a 10 minute video in 5 minutes and play pretty much any game on decent settings. There are always anxious sellers out there who are willing to get rid of good stuff for cheaper than it is worth. It’s just a matter of biding your time and being patient. Which brings me to…

    3. I have learned to be patient

    Getting exactly what you want exactly when you want it is expensive. Pre-ordering games is expensive. Buying the very latest technology and fashion is also expensive. I have learned to wait several months after new stuff comes out because then I can buy it used for a huge discount. This has easily saved me thousands of dollars over the course of the last year. If I don’t have a lot of money and I have a hankering for something specific, I can wait until my next payday to go get it. What used to be a “I must have it now” mentality has now evolved into a “I have to get that eventually.” That switch alone is worth thousands in savings.

    4. I have more disposable income

    live below your means

      This came as quite a shock to me. I used to think I was living right up to the very edge of my paycheck and I always considered getting a second job. Living below your means also means that you’re not spending money frivolously and that means your paychecks stretch longer. I went from having nothing at the end of a pay period to having at least a couple hundred dollars. That’s money in my savings account and it feels so good having a safety net which actually grows every month. Of course, it was good for other things too, like…

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      5. I have paid off a significant amount of my debt

      With the extra money, I was able to take control of my finances and a lot of my debt has been paid off. It took some time and some painful payments, but I went from forking out $350/month in debt repayment to a paltry $70/month. By saving money, I was able to pay off debts and now I have even more money. That’s an extra couple hundred dollars every month and all of a sudden I don’t feel like I’m under the squeeze so bad.

      5. I have become an expert in coupons and sales

      When you’re living below your means, you try to stretch every dollar. Things like $0.20 off coupons become a lot more valuable than they used to. Catching coupons online or in the local newspaper becomes a sort of hobby. Also, I started reading the morning newspaper. I was buying them for the coupons anyway so I might as well get my money’s worth right? Not only have I saved some extra money with coupons, but I’ve also become a lot more intimate with my community happenings. Which brings me to…

      6. I’ve become more active in my community

      live below your means

        Living below your means can get boring. You’re not going out to the bar. You’re not seeing as many movies at the theater. And things like concerts and amusement parks are a no go. However, many communities have plenty of events that are either free or really cheap to get into. In my community there was a community potluck organized and a bunch of people showed up to eat food and clean up the local park. It fills an afternoon, you get to meet people who live nearby, and it costs however much it costs to make a dozen servings of your favorite side dish.

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        7. I quit smoking

        Cigarettes are expensive. And bad for you.

        8. My goals have become more clear

        When I was spending money on useless nonsense, my goals were clouded. I knew there were some things I wanted but it always felt like there were other things I had to do first. Yes, I wanted to buy a better car but first I had to take care of this other issue. It was a zigzag labyrinth of self sabotage. Since I’ve begun living below my means, things that aren’t important actually seem unimportant while the important stuff remains important. My focus is trained on what it needs to be trained on.

        9. My apartment has never looked this good

        I’ve been spending a lot more time at home since I started living below my means. What I had before was functional but it wasn’t really enjoyable. I have spent more time keeping my house clean. The furniture all over the house has been reorganized. I have begun having more guests over to hang out rather than going to their place. There’s more pride in what I have instead of feeling the need to constantly augment it with more things that I want.

        10. My friends and family mean more to me

        Living below your means changes how you view things. You stop coveting things so much and you start coveting people more. This may sound bad but friendship is free. Spending time with your friends and family doesn’t cost you anything. You also have the added benefit of strengthening relationships and forging new ones. Some readers may think I’m saying that I didn’t appreciate people before I started living below my means and that’s simply not true. You just become more acutely aware of how much they mean to you.

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        There are a lot of things that suck when you live below your means. You don’t get to do what you want to do all the time and you may not get to be a part of the latest trends in fashion, technology, or anything else. However, it is something many of us have to do when faced with financial challenges. If you have to do it, you might as well make the best of it. Here is a great article to help you get started.

        Featured photo credit: DIY Lol via treasure.diylol.com

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        Joseph Hindy

        A writer, editor, and YouTuber who likes to share about technology and lifestyle tips.

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        Published on January 8, 2021

        How To Pay Off Credit Card Debt Fast: 7 Powerful Tips

        How To Pay Off Credit Card Debt Fast: 7 Powerful Tips

        Ever wondered whether your credit card debt is the reason you’re in a bad financial situation? You can’t enjoy any fun activities because a good chunk of your money goes toward debt payment. Heck, you’re even behind on some of your monthly bills.

        The effects of clumsy debt management are too many to list here. This guide is going to help you discover how to pay off credit card debt fast and start chasing your financial goals.

        Debt problems are the last thing anyone wants to encounter. But things can get out of hand when all the “little debts” you take accumulate in interests.

        What if you knew some simple and proven ways to be debt-free quickly? Implementing them would mean better financial health for you. It becomes possible to free up cash for your “wants.” These include taking a trip or buying something you’ve always desired. All that while paying your bills on time!

        Let’s not wait any longer. Here are 7 powerful tips for paying off credit card debt fast:

        1. Pay More Than the Minimum Credit Card Payments

        Many people only pay the monthly minimum on their credit cards. Truly, that’s the right amount for staying on good terms with your credit card company. But you need a different approach if you’re looking to achieve financial independence within a short time.[1]

        Most of your payments go toward interest costs when you only pay the minimum amount. A substantial sum of your balance remains standing. As a result, it becomes more expensive to eliminate your debts.

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        You don’t want to wait more than 10 years to get rid of debt while it’s possible to do it sooner. All you have to do is double that $100 minimum payment to $200 or go higher.

        The good thing is that minimum credit card payments are affordable in most cases. By paying a higher amount, you reduce your interest costs, lessen your borrowing period, and boost your credit score.

        2. Start With High-Interest Credit Card Debt

        If you have more than one credit card debt, prioritize putting the extra money toward the ones with the highest interests. This debt pay-off strategy, known as the debt avalanche method, is essential for being debt-free quickly.[2]

        First, you need to list down all the credit card debts you have in the order of their interest rates. Next, you choose the one with the highest interest and pay a significant amount toward it each month. It can be an amount twice or even thrice larger than the minimum payment.

        At the same time, you make monthly minimum payments on the other debts. Their interest charges won’t be as costly as that of the first debt on your list. You only move on to the next high-interest debt after the first one is gone. Remember that your focus is on the interest rates and not the balances.

        3. Revisit Your Budget

        Budgeting is useful for tracking your financial moves. Once you create a budget, some tweaks along the way can make it work for you better. One situation that requires you to revisit your budget is when you’re struggling with debts. It might hurt a bit to slash some expenses. But you also don’t want to miss out on achieving financial freedom in the long run.

        You can reduce some variable expenses to free up more cash for credit card debt payments. They’re the ones that change from time to time. Some examples are groceries, fuel, and clothing.

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        Other opportunities for cutting down your spending lie in non-essential expenses. Instead of dining out all the time, you can cook at home more to save money. You can also share some subscriptions with friends and pay a fraction of the cost.

        If you’re determined enough, you can eliminate all your unnecessary expenses and focus on paying off your credit card debt first.

        4. Avoid Using Your Credit Cards

        Do you want to know how to pay off credit card debt with a low income? One simple way is to stop using them. Having your credit cards everywhere you go means that you’ll be more tempted to buy unnecessary stuff. In this case, you spend money that you don’t really own and get deeper into debt.

        The quickest fix to stop the debt build-up is spending with cash. You’ll be more aware of everything you can afford at any particular time. If you decide to keep one or two cards to ease the transition, always make wise choices. For instance, only use them when experiencing financial difficulties.

        It’s best to categorize your fun activities under “discretionary spending” in your budget. This way, you won’t need more debt to kill your boredom. By halting your credit debt from accumulating, it’s easy to pay down what you already owe and be happy with the progress.

        5. Start a Side Hustle to Boost Your Income

        You’re probably turning away a lot of money by not monetizing your skills. Everyone has something that they’re good at doing. And you can use that to generate extra income for attacking your credit card debt.

        If you look around your neighborhood, you can find several side hustle opportunities. It can be pet sitting, tutoring, or lawn mowing. You can start an online business by offering services such as digital marketing, content creation, and web development. Such skills go in high demand on freelance sites and job boards.

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        Finding clients on social media is also a good strategy to utilize your skills and make more money. Facebook groups, Quora Spaces, and subreddits are some places to look for side jobs. You only have to join a niche-specific platform, share your services, and respond to any opportunities.

        It’s possible to learn a skill, practice it, and earn from it. Use the free resources online or purchase some e-courses to get started.

        6. Sell Your Used Items for Extra Cash

        Starting a side hustle isn’t the only way to generate extra money. You can turn unwanted items into cash for paying off credit card debt. Whether it’s an old TV, book, or furniture, there is always someone itching to buy your used stuff.

        A garage sale, as much as it’s old-fashioned, is perfect for getting your neighbors and passers-by to buy from you. You keep all the money because there are no business permits or taxes involved. While you may not make much cash, it’s better than leaving your stuff to go defunct in your storage.

        Other than that, you can sell your used stuff on online marketplaces. Facebook groups are great places to start if you want quick approvals and hence sales. You only have to ensure that your listing follows Facebook’s commerce policies.

        When selling any pre-owned items online, ensure they’re in good shape to avoid problems with your buyers.

        7. Know When to Seek Help With Your Debt

        Asking for help with your credit card debt can be challenging to do. But letting it drown you is a road you don’t want to take. While you may feel embarrassed at first, it’s the best way to get back on track when you run out of options.

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        There are tons of non-profit credit counseling organizations that can offer you free guidance on how to escape the debt trap. An example is The National Foundation for Credit Counseling. They simply review your finances and help you determine the source of your financial problems. After that, they match you with an actionable debt management solution.[3]

        In extreme cases, the debt solution can be:

        • Debt relief – where your debt is partially or wholly forgiven
        • Debt consolidation – taking out one loan to repay others
        • Debt settlement – the creditor forgives a significant portion of your debt
        • Bankruptcy – legal process for seeking relief from some or all your debts

        It’s necessary to carefully weigh your options before deciding on the way to go. Find out how it might affect your credit score and any other risks.

        Wrapping It Up

        Debt is a major setback when you’re trying to prosper in life. Paying off credit card debt is essential if you want to reach your financial goals. That means having more free income, a good credit card score, and even a chance to retire early. You become more productive each day because of the peace in your mind.

        So, you now have some tips on how to pay off credit fast. Go ahead and get rid of that good life progress killer!

        More Tips on How to Pay Off Debt

        Featured photo credit: rupixen.com via unsplash.com

        Reference

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