Don’t Go Broke Trying to Look Rich: How to Live within Your Means
March 3, 2021 | Mason Roberts
Learning how to live within your means is a major step towards building your financial stability and future wealth. And even though it may sound hard to accomplish, it is doable with the right approach and the choice of proven strategies. So, let’s consider them in detail.
How to Live within Your Means
1. Have Your Savings Automated
Give yourself an imaginary pay cut. Have a percentage of your income deposited to a savings account as soon as it comes in and budget for every expense with only what’s left. You can start with a tiny amount – say just 3-5% of your salary – and increase it over time. What matters is that you start.
2. Put Utility Over Looks – and Downsize Where You Can
Take a careful look at your expenses – what are you overspending on? Have you bought a new fancy car when you could have chosen an old utilitarian one?
Are you overpaying on clothes you could buy for a much lower price if you thrifted? Are you spending too much on grocery shopping at more expensive supermarkets and buying brand products?
If so – try to downsize. Sell your new car, pay it off, and buy a solid used one. Challenge yourself not to buy new clothes for a while. Buy groceries at Aldi. In other words – identify your problem spending areas and try to find solutions.
3. Give Yourself an Allowance
Many guides on how to live within your means emphasize lifestyle creep and overspending that comes with it. And they're right! The more you make the more you tend to spend. Though being financially responsible doesn’t necessarily mean constantly denying yourself.
Simply give yourself a sum of money regularly as an allowance. Create a budget for savings and necessary expenses and spend only what won’t hurt your budget. Stick to your plan.
4. Have Plans for Upgrading and Utilize Sinking Funds
Another mistake you might make when learning how to live within your means is assuming you should always settle for cheap alternatives. While downsizing when possible is important, it doesn’t mean you should never purchase anything high-quality due to high costs ever again.
You should just learn how to plan for it long-term. This is where sinking funds come in. Allocate a portion of your paycheck to a specific goal – and you’ll have money for a new laptop, or washing machine, or even a car in no time without having to bust your budget or go into debt.
Knowing how to live within your means requires being smart about purchases, not constant denial.
5. Don’t Go Overboard – Learn to Recognize Situations When Spending is a Necessity
A major aspect of how to live within your means is knowing not only how to save money, but also understanding how to spend it.
For example, if you ever find yourself facing a financial problem that could exacerbate when postponed, it’s better to spend money on it, even if your budget is too tight.
Major car problems, leaky roofs, doctor’s visits are all these types of expenses. It doesn’t matter if you’ve got money saved or not, they should be dealt with immediately. Repurpose sinking funds, don’t give yourself an allowance, or – if you still can’t get enough cash together – apply for title loans.
What Makes Title Loans an Optimal Option in an Emergency?
The biggest benefits of title loans are the simplicity and swiftness of the process. There are only a few requirements – you need to be a legal adult (over 18 years old) vehicle owner and have the title in your name to be eligible for a loan at Illinois Title Loans.
That’s it. Your credit history doesn’t matter much, so you can apply with no fear of rejection, even if your credit is bad (or nonexistent). The income type won’t play a significant role in your approval process either. As long as you have some sort of income to pay off the loan, it will be accommodated.
And the best part? You’ll get the money the same day and be fully equipped to deal with your emergency immediately.
How Do I Acquire a Title Loan?
One of the greatest traits of Illinois Title Loans, Inc. is that you can start the process online, from the comfort of your own couch.
All you need is to fill out the inquiry form you’ll find on the top left of our website and wait for it to get processed. A loan representative will get in contact with you and set up a face-to-face meeting at the nearest store location.
You will need to bring:
- Your car;
- Your car title – it must be in your name (you can’t use a friend’s/relative’s car) and completely lien-free;
- Your government-issued ID to prove you’re a legal adult and the car title is in your name.
The loan representative will examine everything and determine if you qualify for the title loan and how much cash you qualify for).
All in all, the process takes somewhere between 30 to 45 minutes on average, and if approved, you’ll get your cash on the same day. So, what are you waiting for? Get started today with Illinois Title Loans, Inc.!