A Key Element to Financial Success

It's been said that this is the first generation living in a total credit-card economy, one in which getting ahead has become more important than staying out of debt. As people become overwhelmed by working ever harder to pay for more stuff, frugal living is a hot topic again. Proponents of voluntary simplicity or living below your means (LBYM) make conscious spending decisions to live a full and rich life.

Steps

1 Read Set Up a Budget and audit your own spending habits. Compare your expenses (including debt) with your income. If you're consistently spending more than you earn, it'll be no surprise that you're carrying a larger and larger debt load.

2 Make a list of short, medium and long-term financial goals. List in detail what you'll have to give up in order to meet each. Give yourself a reasonable period of time to practice your new spending habits in order to see progress.

3 Go through your belongings and cull as much as you can.

4 Favor quality over quantity and buy the best you can afford. You'll save money in the long run since high-quality items last longer and require less maintenance. This applies to adult clothing, furniture, electronics and cars. On the other hand, buy used quality kids' clothing and toys every chance you get.

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