How to Live Frugally and Still Enjoy Your Life

A couple was recently interviewed, and they claim that they do not have enough funds to max out their contributions towards the 401k plan. This family was later discovered to have a combined income of over $250000 a year. To completely max out their 401k contributions, they would have to amount to less than 15% of their income. Isn’t that crazy?

The Federal Reserve Bank of St Louis has released a report claiming that in 2018, the annual personal saving rate is 6%. Little wonder this couple claims that they earn little and they cannot max out their 401k accounts. They also released another report saying that 29% of families in The United States of America have saved less than $1000.

When you settle down and study these findings, you will get to see that a lot of people are living higher than their means and it is very sad that most of them do not realize it. These people have little or no idea what living below your means is.

A lot of people spend their time trying to escalate their lifestyle without paying close attention to the concept of saving. It is very wrong to compare your lifestyle with those of your peers. This is because you fail to realize that they may be living far beyond their means in order to impress others. However, there are several signs that when they occur, it simply means that you may be seriously living beyond your means:

• Living from Paycheck to Paycheck. You run out of cash before your next paycheck
• The cost of home or automobile maintenance scared you
• You always avoid health checkups because you are afraid of the cost
• A poor credit scores
• Lack of emergency fund

There are also signs that you may be living exactly at your means. These signs include:

• The two earners pay the mortgage
• The two earners pay for goods together
• You do not contribute to the 401k plan

However, the signs that you are living below your means are:

• You keep up with health checkups
• You handle auto maintenance with ease
• You have an emergency fund balance

In a case where you do not save on a regular basis, it simply means that you are living beyond your means and it could be very dangerous for you. When trouble comes, such as job loss, business failure, medical bills, house expenses etc. you will easily go into debt. However, if you have an emergency fund put away somewhere when things like this tend to occur, it does not seem to bother you too much.

When you conduct proper research, you’ll get to discover that a lot of people are living beyond their means. If you are one of them, there is no need to beat yourself up too much. The question you should ask yourself is, how do I change? Once you can track down your expenses and determine where your money is going. For expenses that are too high, cut them down and save the extra money. It’ll work well for you.

In cases where you are in need of more money, and you have a vehicle you want to use as collateral, You can also do well to check out TFC Car Title Loan! They are capable of helping you receive car title loans that would help you put more money into investment streams.

Content Writer for TFC Title Loans. In business since 1994