The biggest mistake made by many people who find financial success is to begin living as if there is no limit to their income. There is a sense of security and extravagance that comes with knowing you have a consistent, sizable income. Yet, there is an end to the money flow and if you aren’t careful to live within your financial means you could find that end much quicker than you ever imagined.
No matter what type of financial success you have found and no matter how large your yearly income may be, there is a limit to your money! This in turn means there must be a limit to your spending. Otherwise, you could go from financially set to a huge financial setback that is hard to get out from under.
If you can’t afford to withdraw the money directly from your bank account and pay for something, then chances are this isn’t the appropriate time for you to be purchasing that item. The mere fact that you would have to borrow from someone else (whether it is a bank or a family member doesn’t matter) shows that you would not be able to live within your financial means while making that purchase.
When you borrow against future earnings you are putting your financial security and freedom at serious risk!
This means making some hard decisions in order to ensure your financial success grows with time rather than being squandered. You may have to ride around in your old car for a bit longer rather than purchasing the shiny new vehicle that you really want. You may have to cut down some living expenses in order to afford more clothing and shoes if that is more important to you.
There are ways to get everything you want without borrowing or whipping out credit cards. You just may not get it all at the snap of a finger.
When you live within your financial means you should be able to save at least a small percentage of your income. A savings account should be much more than temporary storage for a few extra “rainy day” bucks. How financially secure would you feel if you had enough money in the bank right now to cover six months of your living expenses? What about a year? Pretty darn secure, right?
That security is worth its price in gold! Cut back on spending as much as possible and make a commitment to place a given percentage of your income into a savings account until you have that sense of security. You never know when something is going to happen and that financial success that you are enjoying right now may be gone or may seriously reduce.
Don’t Be Too Proud…
Many people who find financial success think they are done with shopping the clearance racks or using coupons, but think of these things as free money. If someone was waving a fifty dollar bill in your face, wouldn’t you take it? When you use coupons or purchase discounted items over full price items you are giving yourself free money. Every little bit counts over time so don’t be too proud to purchase clothing only when there are big sales or use coupons at the grocery store.
Remember: financial success is wonderful, but financial security for the long term is even more vital.
Article Source: http://www.articlesbase.com/wealth-building-articles/how-to-live-within-your-financial-means-even-after-financial-success-2515804.html
About the Author: Jerry Pelletier is an online marketing and self branding expert who teaches the tips and techniques to his team of new and experienced entrepreneurs that gets results to sell anything to anyone, anywhere in the world, working from your own home-based business. To learn how to become Financially Secure and gain Financial Freedom through his unique Business platform. To visit his website or contact him from there. http://www.TimeForYours.net