A very common tenet of sound financial advice is “live within your means.” Living within one’s means holds different meanings to different people. So let’s put the confusion to bed right now.
Living within your means means spending less than you make. Figure out how much money you earn, after taxes, on a monthly basis. Then set a spending budget that allows you to keep your expenses under that total take home pay number.
When you are able to keep your expenses under your income, you have extra money left over at the end of every month in savings that you can invest in your future. For more, read the full article here.