A quick disclaimer before we jump into this article, I don’t intend for this to be a income-gap disparity discussion, or a commentary on social justice. The fact that the rich only seem to get richer while the poor get poorer is certainly an issue that needs to be addressed, but you’ll have to head for another site for that topic. The goal of my article today is an appeal to live below your means.

Think back to your time in college, or back in high school. Life was probably pretty good back then, it was certainly simpler. Your bills were likely fewer, you got by on less income, and your worries were likely fewer. You probably got by on the stereotypical ‘college diet’; ramen, cheap meat/veggies and microwaveable meals. Looking back at my own budget, I’m amazed and how little I could live off of. It didn’t take much in my budget to make me happy. I found lots of free events to fill up my time, and when I went out to eat, it was often on the cheap. Something seems to change though once we get out into the real world. Suddenly we feel entitled, and our spending grows exponentially. Along with more bills comes more ‘needs’. New clothes, new car, new restaurants, and nicer things all around us. It’s amazing how more money seems to quickly equate with more problems in our lives. I’m here to advocate the leading of a simper lifestyle, not exactly that one we led in high school or college, but one of a smaller scale than the one we lead now.

The right attitude

The idea for this article actually came our of a conversation that I had with my wife while we were doing our taxes. I was looking at our income for the past year and was pretty amazed. Now granted, it’s not like our income is sky high or anything, just a normal young professional salary; enough to get by and a little more on. After looking at our income, I exclaimed, “well it certainly doesn’t feel like we make that much money”, and if you know me, it’s not because of the way that we spend our money, instead it on account of how much we save. The realization dawned on me that we live much below our income level. I’ve been living my life with an attitude that I don’t make nearly as much as I do, and I lead my life thinking of myself being a lot poorer than I really am.

Live below your means

Think back to the time a couple of years ago, when you weren’t making nearly as much as you were. People often refer to their college year as the ‘best years’, and dang, I was practically broke the entire time! It shouldn’t be any secret that money doesn’t bring you happiness, and neither will all the new things that we surround ourselves with. The real secret to getting on the right path financially involves saving (and investing) more than you earn. If you don’t keep your expenses in check, they often have a habit of growing in step with your income. Instead, learn to save a larger portion of your paycheck, and live off less. Save that money, whether for retirement, a house, a car or even grad school. Pay down debt, get debt free and take steps to stay that way. It’s never going to be easier to save money now when we’re young, so take advantage of it! If you were able to live on a lot less a short while ago and be happy, you can certainly do it now!

Focus on the future, while enjoying the present

I get some pushback from readers and people I talk to when I’m encouraging them to save money while they’re young. The pushbacks range anywhere from, “YOLO” to “well I want to enjoy my money while I’m young”. Sure, I get that, being cooped up as an old millionaire with tons of money and not being able to enjoy it doesn’t sound that fun. I get that we work hard and that we should enjoy our money. What I also get is that I can be happy on a lot less. Sure I like nice things as much as the next person, but I realize that having them won’t make me happy, and I learn to pick and choose my new things. What I’ve also learned is that little steps now will make a HUGE difference in my life later on. Setting aside 15% of my paycheck for retirement certainly isn’t easy, but I know that one day I’ll won’t have to work and will be able to kick back and enjoy life. I also know that staying out of debt and saving money will ensure a life of financial freedom for not only me but one day my future family. YOLO doesn’t have to mean spending every dime out at restaurants or bars, it can mean enjoying life in moderation, while making wise decisions!

Being a young professional, we find ourselves at a crucial time in our lives. The choices we make now will help shape the rest of our lives. For me, I choose to live below my means and save a large portion of my income. I’d encourage you to do the same and think that you’ll still find yourselves happy, even while making smart financial decisions!

Thanks for reading! One way to cut down on expenses is to not pay for books, and if you’re like me, I love reading via my Kindle app, whether on my tablet or my phone. Check out Kindle Unlimited and read more, for less! Even better is a free trial!