How to Save Money and Get Rich by Living Below Your Means

In the United States, we live in a capitalistic, consumer-driven economy. Encouraging consumer spending has helped our economy continue to grow and grow well (recent economic hiccup aside). However, you can learn to ignore (or at least understand) the constant calls for consumerism if you have the patience and discipline to do so. You can learn to ignore the non-stop triggers to spend more of your money. This will help you live below your means, save money and get rich. The big corporations may not be happy you've chosen to live this way, but you will find life a lot simpler.

The premise of this article is that you too can live below your means, save money and get rich. And, if you are able to live below your means for your entire life, you'll never run out of money. Of course, this is a lot trickier when you retire, but that is why it is so important to save a healthy amount when you are working. With luck, you'll be able to live below your means in retirement on passive income from your nest egg, such as stock dividends, savings rates, CD's, etc...

Here are some of my tips to help you begin to live below your means, save money, and get rich.

Live Below Your Means, Save Money, and Get Rich Tip #5 - Don't Believe the Hype
Marketing and commercials are an enormous business in the United States. We're taught very early that we have to buy everything we can afford (or can't afford), rather than save money. We are bombarded with advertisements promising to make us better looking, more popular, and to basically make our lives better.

After you've bought the item, you rarely get the benefits you were promised. And, if the item was a luxury item, it often loses its luster after a very short period and you're left wanting more. This is not the way to get rich. Don't give in to the ads. Remember that your goal is to live below your means and save money, so that you can get rich in time. The corporations' goal is to convince you to spend your money. Are you going to let them win?

Live Below Your Means, Save Money, and Get Rich Tip #4 - Learn What You Need and What You Want
You can save money and get rich much quicker if you learn the difference between items and services that you need versus those that you want. For example, you probably need milk. But, you don't need name brand soda. You may need a car to get from point A to point B, but you certainly don't need a BMW or Mercedes.

Don't deny yourself your every wish and live like a pauper. You just need to realize when you are purchasing something because you want it, not because you need it. If you are in a store and are about to buy something you want, try to walk out. Go home and let a little time pass. If you really wanted the item and think you will get value out of it, you will make the trip back to the store. If you don't feel like going all the way back to the store to purchase the item, then you just saved yourself some money.

Live Below Your Means, Save Money, and Get Rich Tip #3 - Cut the Coupons and Hit the Sales
Cutting coupons and researching sales may not be the most exciting pastime, but it help you save money over the long term. To get rich, you will likely need to accumulate small sums of money over a long period of time. That's exactly how coupons and sales help you live below your means.

I'm not advocating buying items solely because of coupons or sales, but if you are going to buy an item regardless, you may as well buy it as cheaply as you possibly can and save money. Why hand someone more of your hard-earned cash than you need to?

Live Below Your Means, Save Money, and Get Rich Tip #2 - Forget the Joneses
Our society tends to be very greedy and jealous. God forbid our neighbors should have a nicer car, or a pool in the backyard. In the long run, who cares? If your happiness depends on buying things and keeping up with the Joneses, you have other problems to deal with first. Many studies have shown that happiness is not very correlated with money once a minimum standard of living has been met. Marriage, kids, learning, new experiences, and social relationships can all provide you more happiness than wealth.

Let the Joneses spend more than you. You're relative wealth will increase while they spend money on items that will provide a fleeting feeling of satisfaction and superiority. You'll probably retire earlier and better than they will. Don't try to look rich and act rich if you ever actually want to get rich.

Live Below Your Means and Get Rich Tip #1 - Think About Every Penny You Spend
It's extremely easy to pay for items with a credit card or debit card without even realizing the sales price. It's just too easy. That in turn makes it very hard to live below your means, save money and get rich.

Therefore, the most productive tip to help you live below your means and save money is simply to pay attention to what you spend. If you practice counting your pennies, you'll quickly become accustomed to noticing what you spend. This is not a budget (which is also not a bad idea). This is simply training your mind to wake up every time you're about to spend money. Just being aware can make the difference between buying an item and walking away. And, that can save you a lot of money in the long run.

Summary
If you try to incorporate some or all of these tips, I guarantee you will learn to live below your means and save money. And, that gives you the upper hand in your quest to get rich. Even when you think you've arrived in the "rich" category, you may continue the same habits discussed in this article if you've practiced them enough. If that is the case, you will truly be financially free and can devote your time and worries to other items of far more importance.