Are You Living Within Your Means?

One of the biggest obstacles to yielding wealth today is a propensity by many to live beyond your means. Yielding wealth requires that you live within your means. PowerWealth.com offers this rather enlightening and interesting look at the differences between the two:

It is vital that you understand the difference, and even more vital that you choose to live within your means. This may mean sacrifices of things that you might have come to think that you need. My husband thought he needed cable. But when we went through a rough patch after our marriage, he discovered that he didn’t, when it came down to a choice between cable and food.

And that’s what living within your means is all about. And what many people don’t grasp. One of the reasons there is so much debt in America right now is that some people think that they can have the food AND the cable. But they have to borrow to get the cable.

Tomorrow we’ll look at needs v. wants, and how understanding this basic personal finance concept can lead to yielding wealth.