Living within your means means more than just balancing your budget. It means being aware of the difference between what you need and what you want. As Mark Twain once said, "Comparison is the death of joy," and if anything, you need to learn to find a way of spending that works for you -- not for your neighbors or best friends. Living within your means requires you to be mindful of how you spend your money, but if you do it correctly, you won't actually be depriving yourself of the things you really need to be happy.
This includes things such as groceries, utilities, and clothing. Essentials are things you absolutely cannot do without. You cannot survive without groceries, for example, while you can survive without spending $1000 on clothing each month (even if you don't feel that way!).
This will probably work best if you use a monthly income. If you are on salary, this is usually pretty easy. However, if you are part-time, unemployed, or a dependent, this may be a bit more difficult. Most likely, your best route is to take your monthly income or budget for the last three months and take an average. While this may not be spot on, it will likely be close enough for you to rely on to make ends meet.
When you have to estimate your income, remember to remove the amount that you would reserve for taxes. Depending on how much you make, it may look like you have a bit more money than you actually do before you pay your dues to Uncle Sam.
This includes things such as groceries, utilities, and clothing. Essentials are things you absolutely cannot do without. You cannot survive without groceries, for example, while you can survive without spending $1000 on clothing each month (even if you don't feel that way!).
This will probably work best if you use a monthly income. If you are on salary, this is usually pretty easy. However, if you are part-time, unemployed, or a dependent, this may be a bit more difficult. Most likely, your best route is to take your monthly income or budget for the last three months and take an average. While this may not be spot on, it will likely be close enough for you to rely on to make ends meet.
When you have to estimate your income, remember to remove the amount that you would reserve for taxes. Depending on how much you make, it may look like you have a bit more money than you actually do before you pay your dues to Uncle Sam.