Below Your Means Basics: Track Spending and Build a Budget

At Below Your Means we are passionate about building personal freedom through spending less, saving money, and understanding what we value.   The first step to living below your means is tracking your spending and building a budget.  Sure, you can cut down on your spending, even significantly, without knowing where your spending is going.  But finance is, at it’s most basic, an exercise in math.  If you bring in more money than you spend, you’re living below your means.

Simply cutting your spending isn’t going to lead you to happiness though.  In fact, your budget plan may fail simply because you don’t have the tolerance for living within the plan you’ve laid out.  But, if the way your life is set up now requires you to spend more money than you make, then at a certain point you’re going to need to make some changes.  What changes, exactly, have everything to do with what you value and your sense of what things in your life are worth.

To help you build a budget that you can thrive on, we’ve assembled a few articles on tracking your spending and building a budget the Below Your Means way.

Consider this a getting started guide to budgeting basics:

Getting a monthly and/or annual budget in place will show you once and for all that you CAN make decisions that lead to long term happiness and security.  And you don’t need a huge income to make it happen.  You do need to understand what is important to you, and plan for that.

 

This is the single step with which your journey starts.  Sure, you can cut down on your spending, even significantly, without knowing where your spending is going.  But finance is, at it’s most basic, an exercise in math.  If you bring in more money than you spend, you’re living below your means.  If you don’t, you’re not.  Tracking your spending isn’t everything when it comes to living below your means, but it’s hard to be successful without it unless you institute an all-cash system.  Fortunately, there is a whole industry building computer software to help make it simple, and some of it is free.
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1 Response to “Below Your Means Basics: Track Spending and Build a Budget”


  1. krantcents

    Budgets help you reach your financial goals. It takes a minor amount of planning and you can put together a simple budget. Monitor your progress and adjust foorts to meet your goals and you are successful.