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Living within Means

You just bought a big house but are not left with any money for the comprehensive health insurance you always wanted. Are you struggling to make ends meet? Your spouse lost her job that paid all the house bills. You desperately need money to send your kid to college. Looking at tremendous financial stress like this one may wonder if life is worth living or enjoying at all.

The way out is a stepwise approach to living within means that not only helps you spend wisely but also destroys financial stress.

• Step 1: Identify important responsibilities Make a list of high priority expenses that will occur in your lifetime. These expenses include your responsibilities like education and expenses on extracurricular activities of your children, health of all members of family including parents and pets, and life insurance, apart from routine expenses.
  
• Step 2: Adjust your budget for the future Put money aside from your budget every year for the future. This may involve spending lesser amounts now. You might have to buy a smaller car, so that money is available to pay installments for the house purchase.
  
• Step 3: Pick up bargains Spending wisely implies saving money where you can. Watch out for discounts and sales carefully. Pick up the free offers at the supermarkets.
  
• Step 4: Track expenses Many times we wonder where all the money goes. Recording expenses daily keeps the confusion away and keeps you in control.

This simple stepwise approach will help you live comfortably in what you have.

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