wealth building

To live frugally below your means is the way to build wealth.

You hear about frugal living all the time, but do you know what does it mean? More importantly, do you know if you are living below or above your means?

To live below your means is to live a lifestyle you can finance with money left over. It’s all about cutting your expenses so you have money left for savings. It means to live with contentment and buy only what you need. It gives you the ability to build wealth while living a reasonably comfortable lifestyle.

However, it is easier said than done to live below your means in this credit-based, possessions-flaunting society. We see temptations everyday and everywhere, and as a result many adults spend not only what they have now, but also what they hope to get in the future. This is why there are so many adults and families with credit crisis.

They are certainly not living below their means. Now, let’s see if you are living below your means using the simple formula below.

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