I happen to live in a nation where living within your means is optional. It's a pretty good option, and I highly recommend it, but we have fancy devices like credit cards and loans and mortgages, the combination of which allows an alarming portion of the population to use resources in advance to receiving them. This can either be a blessing (when used and budgeted appropriately) or a curse (when abused or when used and you realize you have to pay back the money for that $40,000 education that didn't get you a paying job).
Since I fall into both those categories; having school loans that require repayment and having a rudimentary understanding of mathematics that allows me to calculate, to my dismay, just how much of my money goes toward student loan interest, I've been learning over the past year or so how to utilize what resources I have to enjoy life to the fullest while staying safely within budget. As a result, we have nearly put to rest all my husband's student loans and have been faithfully plugging away at mine, while being able to afford some things we find important: eating naturally, travel to visit friends, and giving to those in need.
The first key, I've discovered, is managing your resources. This does not count credit cards and loans: those are money drains, not resources. My husband has a job that pays $400-450/week (depending on hours). I have lots of time on my hands, as he drives the only car between us to work. We have our unique skills and fast learning ability. We have math (as much as I despise the thing) and internet access. We have furnishings and the available space of a 2-bedroom apartment in a semi-rural quadruplex. For others, the resources might look very different, but you must assess and look at your resources in such a way as to make them work for you.
The next key is your money drains, things that cost you. There are the obvious monthly bills like phone, internet, rent, water, trash pickup (depending on where you live), insurance (auto, health, etc.), loans or mortgages, magazine or gaming subscriptions, food, household purchases, entertainment purchases, and any other things you spend money on.
This is where it gets creative. I coupon (more on that later), cook, sew (custom and sell online) and make handmade gifts to help reduce the out-flowing of cash and increase the influx of cash to cover other bills. We also reduce our spending by deciding NOT to purchase certain items, or to limit how much of those items we purchase. For instance, neither my husband nor I find it necessary to watch a lot of TV, so we forgo cable/dish and instead invest the money in Xbox Live, which allows him to play games and keep up with friends at the same time. We also limit how often we go out, whether that's to eat or to see a movie or shop or what have you, because even if we have a "free" date night out, the gas money to go anywhere costs us around $10. The idea is to decrease the spending and increase the income. This also applies to spending, like prioritizing paying off money-draining loans so you don't have to spend more in interest over the long-term, and choosing to keep up the car so you don't have to pay for towing when something finally gives. Investing in things that are more long-term focused is a way better idea than prioritizing by urgency.
Up next: Using Those Assets (what I got and what I don't got)
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