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Many people today find it difficult to live within their income. This is as a result of their spending attitude which may be as a result of spending extravagantly or spending on unnecessary things. It is necessary for you to be able to differentiate between what you need and what you want.

Below are necessary steps to living within what you earn.

  1. KNOWING WHAT YOU EARN AND WHAT YOU MAKE: What you make in this context simply means the extra tips, kick-back, or ‘runs’ you do in your place of work, while what you earn is the actual salary you are being paid. Some people run their home and their life with what they make rather than what they earn. They live in expensive rented apartment that their three months salary cannot contain. If you three months salary cannot pay your annual house rent, you better have a rethink. What happens to your exotic lifestyle if you are transferred from that position to another place where you will solely depend on your income for survival? ‘What you make’ should be used to add to ‘what you earn’ and not the other way round.
  1. KNOW YOUR INCOME AND OUTFLOW: Make a list of any and all income you have from your job, runs, extra tips, over time, or anywhere else. Then make a list of every bill you have (especially the fixed bills), from house rent, electricity and lawma bills, to water, pay tv bills, entertainment, transportation, feeding, repairs/maintenance etc. (Don’t forget bills that may not arrive monthly) These are your fixed expenses — the ones you have limited control over. If your income can accommodate certain expenses for extended families, you can create that too.


  1. CREATE A BUDGET: When you are done itemizing your income and expenses, create a budget. 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. It is advisable to plan your budget based on the previous months and cut some excesses where necessary.
  1. SEPARATE WHAT YOU WANT FROM WHAT YOU NEED: While creating your budget, you must be able to separate what you want from what you need. Before you make a purchase, ask yourself if you really need it. Give yourself time before you go for it. It is advisable to buy things you need rather than going for what you think you want.
  1. EVALUATE YOUR INCOME AND EXPENSES: Assess your income and expenses to see if your will have some savings at the end of the day. If you find out that your income is more than you expenses, that means you are doing pretty well. However, if your income and expenditures are equal, then you’re not saving any money, and if your expenditures are much higher than your income, then you have a problem. In this case, you have to remove some excesses or cut down your expenses from your budget.
  1. SAVE FOR THE RAINY DAY: It is very important to save for emergency. Since life is unpredictable, you have to be prepared for it. Having extra saving for the ‘unexpected’ will go a long way.
  1. BOOST YOUR INCOME: If you are still struggling to live within your income after you have cut down your expenses, you have no option other than boosting your income. The simplest and most gratifying way is to make more at your current job by getting a raise. If that can’t be achieved in your place of work, it’s time to look for a better-paying job because, you’ll find yourself struggling to make ends meet. There are many other ways to increase your income, from selling your stuff to side jobs to turning a hobby into a business. Where there’s a will, there’s usually a way.
  1. NEVER COMPETE WITH YOUR FRIEND: It is important to state hear that you should not have the mentality of competing with anybody. Your friends or neighbours might drive better cars, live in classy houses/locations, take expensive vacations, but that doesn’t mean you have to do the same. You may not know other sources of their income.
  1. CHANGE YOUR DEFINITION OF WHAT IT MEANS TO BE ‘RICH’: Being rich doesn’t have to mean living in exotic cars or living in an expensive location; it can mean having enough money to keep your family and children happy, and to have some spending set aside for fun with your significant other and some light travel, too. Once you see that this can be your own definition of “rich,” you will be able to relax and stop worrying so much about how other people perceive your wealth.
  1. DON’T DEPRIVE YOURSELF: Living within your means, doesn’t have to be about deprivation. Drinking beer at home with friends is less expensive than going to a bar where they sell for twice the price. Does using a car with low expenses when it comes to maintenance deprivation? In short, you can live within your means and still enjoy life. All you have to do is substituting imagination for money. Think about what you really enjoy — then find a way to get it for less.
  1. BE GRATEFUL FOR WHAT YOU HAVE: Instead of focusing on what you wish you had — a new car, a fancy suit, a larger house — focus on all of the things you are lucky enough to have. Many people are out there praying to GOD to be like you. Make a list of all of the things you do have, and don’t just limit the list to the material things – think about your wonderful children, husband/wife, happy home etc. Be grateful!!!

About The admin

Adeoye is a creative brand expert who has a passion for identifying and creating brands, trends, He also has over 3 years experience in Web design, graphics, Video Editing ...

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