Tony Rasmussen, VP of Pubic Relations and Financial Education, Marketing and PR Team for Mountain America Credit Union joined us with the benefits of living below your means.
Living below your means or income is similar to budgeting, but it also means choosing NOT to spend every penny. It's a conscious choice to spend less now, to generate more income later.
Rasmussen gave us an example of buying a modest home and how it could have a positive affect on families and children. He says, "When parents choose to live beneath their means, children are less likely to associate material things with their happiness and self-esteem." In other words, they'll have memories rather than material possessions.
Overall, living below your means also means less stress. You can pay down debt and have financial reserves (emergency savings) for the unexpected. Rasmussen says "When we spend below our means, we're more likely to get the psychological boost that comes from not being strapped -- or financial freedom".
For more information please visit: macu.com.