From what I have discovered about most financially successful people, they still live below their means despite their wealth.
Yes, they have it all, but are never thrilled by the prospect of what their financial power can acquire: luxury cars, endless vacations, flying first class, eating out in exotic restaurants, lodging in 5-star hotels… It all doesn’t mean a thing to them.
Most still enjoy driving their old cars and cooking their meals; that’s what I call “living below your means!”
Living below your means is the ultimate sacrifice for a financially successful future—yes, you heard that right.
It’s the only way you can make intentional choices that help you build wealth and give you peace of mind.
I’m not saying you have to deprive yourself of nice things like skipping your morning coffee or never eating out; no, it goes beyond the basics.
In this post, I will share seven hacks about living below your means that you probably haven’t heard before, but which can transform your financial life without making you feel like you’re missing out on the good things in life.
1. Automate Your Savings Like It’s A Fixed Bill
Each time I made up my mind to save from my salary, I always ended up with less than $35 in my account.
That sounds funny, right? What I didn’t realize was that the mind prioritizes spending over saving. That was why I spent first and saved what was left every month.
I kept making the same mistake until I stumbled upon a finance blog that explained the importance of automating savings.
Thanks to that advice, I’ve now built up a tidy sum by treating my savings like a fixed bill.
If this worked for me, it can work for you too. Start by setting up an automatic transfer of 15%–20% of your income to a dedicated savings account.
This way, you save effortlessly while your mind is conditioned to spend what’s left.
You’re not just living below your means; you’re also building wealth—without feeling deprived of the ‘nice things’ in life.
Tip: Save in a fixed deposit account as a disciplined measure against uncontrolled spending.
Read Also: 7 Signs that you’re Financially Smart
2. Cut Lifestyle Inflation Before It Starts
Earning $60,000 yearly made me feel comfortable. I saved before spending, and as a financially literate person, I followed my budget strictly.
But when my income rose from $60,000 to $84,000 – a whopping $24,000 difference – I didn’t know what to do with the extra.
Making the big decision to cut lifestyle inflation before it started – and investing the extra instead of spending it – was what catapulted me toward financial fortune. I continued to live like I was still earning $60,000.
You should treat your pay raises and other income the same way. Live below your means. Don’t be tempted to inflate your lifestyle with every raise.
Read Also: 8 Spending Habits You Should Imbibe When Passing Through Financial Crisis
3. Delay Spending: Crush the Impulse to Spend
I was excited about buying a large-screen TV. I could already picture the crisp imagery that will come with it. But despite the urge, I decided to delay the purchase.
No, I didn’t cancel the order – I just left it pending for a week. I still enjoyed my old TV, and it served its purpose.
Within 72 hours, I canceled the order after realizing I didn’t actually need a new one. My current TV was working just fine. I saved myself from an impulse purchase.
If you often fall into the trap of impulse buying, try delaying gratification – wait 24 hours for small purchases and 3 months to 1 year for major ones like cars or gadgets.
Sleep on it. Chances are you’ll realize you don’t need it or that your interest has faded.
Delaying gratification is a powerful hack that helps you stay in control of your spending and avoid buyer’s remorse.
Read Also: 10 Financial Habits That Will Make You Wealthy
4. Create a “No-Spend” Challenge That Works
I never realized I didn’t need a gym membership until I set a one-month no-spend challenge. I discovered that my environment was perfect for every type exercises.
Since then, I haven’t renewed my gym subscription.
You’ll likely have a similar realization when you examine your non-essential subscriptions: streaming services, music apps, gym memberships, magazine subscriptions, unused cloud storage, inactive online learning platforms, beauty boxes, gaming subscriptions, dating apps, and in-app purchases.
It’s not just about cutting costs; it’s about understanding what you truly need and building healthier financial habits.
Tip: Use a no-spend tracker to categorize essential and non-essential expenses.
5. Embrace “Secondhand First” Shopping
I never saw secondhand shopping as a smart financial move until I met Gary, whose impeccable designer style always amazed me.
It blew my mind when he admitted that all his clothes were thrifted.
After that stunning discovery, thrift stores, consignment shops, Facebook Marketplace, and other online platform for secondhand goods became my ‘go-to’ for anything from clothing and furniture to electronics.
Don’t get me wrong, shopping secondhand does not compromise on your quality and style as most secondhand items are barely used or even brand-new; rather, it gives you the opportunity of buying essential goods at an extremely steep discount than you can get shopping on a black Friday.
So, do make it a habit to check secondhand options before heading out to the retail store, and you’d be amazed at how much you can save overtime.
Read Also: 9 Financial Habits of Women Who Are Never Broke
6. Earn From Your Hobbies
I love gardening and writing, both of which requires careful attention to details. I could spend all day working in my garden, and on some other days, writing.
I never thought about monetizing my skills until my spouse introduced me to a gardening blog that needed a writer.
Of course, I was the perfect match: a writer and a gardener all in one. Surprisingly, I had earned the equivalent of my salary for a month writing for blogs.
As a gardener also, I worked part-time trimming hedges and mowing lawns for homes and schools, and that also contributed significantly to my wealth creation effort.
As a financially smart person, you can live below your means by turning your passions into steady income streams doing what you enjoy, not for yourself, but for others.
Whether it’s baking, writing, sewing, photography, gaming, gardening, writing, content creation, or podcasting (talking about your favorite topics), whatever your passion is, you can earn from doing what you love to do.
7. Plan and Cook Your Meals
One of the best ways I have cut down on unnecessary spending is planning and cooking my meals.
You save money only when you make strategic meal-planning which goes a long way to save you from mindless grocery shopping, often leading to wasted food, last-minute takeout, and overspending.
With a good cookbook, you can plan and prepare exciting meals without spending hours in the kitchen, it’s all about mastering efficiency, control, and savings. In addition, you get the benefit of wholesome and healthy meals.
Conclusion
Living below your means isn’t about embracing frugal way of living to its extreme, or depriving yourself of the good things of life; it’s about you choosing to make conscious effort to save, invest, and enjoy financial freedom to pursue what truly matters.
Always remember that wealth is built by intentional living and making smart money decisions.
Practicing these seven simple hacks on how to live below your means will help you to achieve your dream of financial success without you feeling like you’re missing out on the fun the world has to offer.
