What Living Below Your Means Really Looks Like Day to Day

Over the years, I’ve seen the daily stress of money issues carve deep wrinkles into the faces of people I know and love. Financial challenges, more than almost anything else, are a recipe for misery.

But it seems there’s a default trajectory for most of us. We spend nearly everything we make, and sometimes more than that. In the best of times, we have little margin. And when the inevitable bad financial break hits us— a large medical expense, a lost job, or a broken water heater— we’re left scrambling to make ends meet.

It doesn’t have to be this way. Any couple with two incomes, and virtually every family in a wealthy country, can easily avoid this financial squeeze by choosing to live below their means. By spending less than you earn, you create the conditions for financial freedom— it’s really that simple.

Living below your means isn’t easy in our consumerist culture, but it’s certainly not complicated. Anyone can do it, and the only place you have to start is deciding what your new, lower standard of living will look like.

Below, I’ll share my own personal list of what living below your means looks like on a day-to-day basis. Coming up with your own philosophy— and even writing it down— will help you cement this way of life into your identity.

Eating mostly home-cooked meals

This one is a no-brainer, but probably one of the biggest areas of waste in a typical budget. Eating at restaurants is fun and convenient, but it’s pure indulgence, and you’re going to pay a premium for that luxury. For the past 15 years of our marriage, we’ve chosen to eat out only on special occasions and with friends. We cook nearly every other meal at home, and that one decision has saved us thousands of dollars per year.

Making repairs and maintenance a priority

Unfortunately, we live in a world of planned obsolescence, and a world where much of the junk we buy is cheaper to replace than repair. But there are many things that we can repair, and I’ve found that maintaining that mindset keeps me from being wasteful in general. When you take care of what you own, it lasts longer, and you end up having to buy less stuff over time. You’re also less likely to upgrade early or make an impulse buy.

Shopping the discount rack at grocery stores

Each grocery store offers its own version of a discount rack or a place where they mark down items they want to move quickly. My wife and I always swing by this section of our local grocery store, and it often becomes a way to try out new items at a low cost. It’s a fun way to enjoy a bargain.

Driving a less expensive vehicle

We currently drive a 15-year-old minivan as one of our vehicles, and we have no plans to replace it as long as it remains reliable. One of my favorite ways to save money is to drive a used vehicle that is known for longevity. You save yourself huge amounts of money from depreciation, and can put that towards other uses or in the bank.

Prioritizing free activities with my family

You don’t have to spend lots of money taking your kids around to fun places in order to be a great parent. In fact, these are often more stressful than they are enjoyable. Instead, our family takes full advantage of the parks, libraries, and free community activities offered in our area. My wife used to work for our county’s parks and recreation department, and I can promise you that there is no shortage of great things to do that won’t cost you a dime.

Buying generic or store brand products

Why pay extra for a name brand when the generic is, in most cases, nearly identical—all you’re doing is paying for the advertising they do to get you to choose their brand. We stock our home with store brand products, and in nearly every case, we find them to be of high quality.

Borrowing tools from our neighbors

I hate buying tools for a one-time project or buying something I know I’ll rarely use, so I usually avoid doing so. Instead, I’ll try to borrow from friends or neighbors and return the favor by lending out my tools when asked. What we’ve created is a common pool of resources that saves us money and builds trust in our community.

Not going away for extravagant vacations

Many of my fondest childhood memories are of dinners and long conversations with my family. We did take vacations, but they were modest and relatively inexpensive. This taught me that, when it comes to experiences, you don’t have to spend a lot of money to have a great time. It’s far more about the people you’re with and the mindset you bring into each moment. Our family still tries to go on vacation each year, but we look for inexpensive options like camping, road trips, or staying with family.

Canceling subscriptions we rarely use

Another example of waste in a typical family budget is subscribing to services that you don’t fully use. What we’ve done instead is both reduce our subscriptions and consolidate the number of services we pay for. It’s fairly easy to find a friend who doesn’t mind sharing, especially if you’re able to return the favor.

Purchasing gently used clothing

I know at least in our area we have many thrift stores offering gently used clothing at prices that are way better than what you’d find in stores. This has become our favorite way to buy clothes for our kids, since they are so quick to outgrow them and often to wear them out as well.

Bringing our own lunches to work

You’d be surprised by how much this one simple change can impact your budget. Instead of buying lunch at work from a cafe or a nearby restaurant, make it a habit to bring your own lunch and snacks from home. You will find it’s easier to eat healthy this way and you can’t beat the cost either.

Living below your means doesn’t have to mean living like a pauper. You can still enjoy plenty of life’s simple pleasures. The only thing you’re giving up is the most extravagant indulgences. Instead of spending every dollar that comes your way, you build up a financial buffer that allows you to say no to stress and say yes to what’s most important in your life.