Living below your means is when you spend less than you earn. So if you make about $3000 per month and pay only $2000, you live below your means.
Lifestyle creep is when you start to spend at the level of your income. When we increase our incomes, sometimes we begin to grow our spendings and stop living within our means.
You are able to make long-term goals like saving for retirement or even being able to manage your money every month.
If you live a frugal life and live below your means, you will have a financial plan and a cushion in times of trouble. The sudden loss of a job will not create unneeded stress.
Living below your means can help to strengthen your relationships. These can be relationships with your partner, family, and friends.
As we strive to hit our financial goals, we need to be able to save more money. One way to save more money is to live below our means.