7 Actionable Ways to Live Below Your Means (And Build a Stronger Financial Future)

When I first started my journey to financial freedom, it felt like I was constantly stuck in a cycle of debt, struggling to save, and watching my expenses creep higher and higher. As a single mom running a business from home, managing money felt overwhelming, and it wasn’t until I made a few small but intentional changes that things really started to shift. I’m not a financial expert, but I’m here to share what worked for me—changes that helped me pay off debt, buy a home, and build savings for the future.

Living below your means isn’t about depriving yourself or living in a constant state of restriction. It's about finding a balance where your money goes to what truly matters, and you stop giving in to impulse purchases that derail your financial goals. Over the years, I’ve learned that small actions, done consistently, can lead to big changes. Here are 7 actionable ways to live below your means, based on my personal experience.

1. Stop Using Credit Cards

I’ll be honest—I used to rely on credit cards for everything. It felt so easy to swipe for purchases, especially when the balance didn’t seem to matter much at the moment. But as many of us know, the debt can pile up quickly, and those interest rates can get out of hand. It wasn’t until I completely cut out credit card use that I started to feel a sense of relief.

Instead, I switched to using my debit card or cash for everything. This might seem obvious, but it was a game-changer. It’s much harder to spend money you don’t have, and not having a credit card meant that I had to become much more intentional with my spending.

According to the National Debt Helpline, the average U.S. credit card debt is over $7,000, and that number is only growing. Getting rid of credit cards doesn’t just stop the cycle of debt; it forces you to focus on what’s truly important—living within your means.

2. Spend Less Than You Earn

This is the golden rule of personal finance, and while it might sound simple, it’s something that took me a while to fully grasp. When I first started my business, I thought, "Once I make more, I’ll save more." But the truth is, it’s easy for expenses to creep up with an increase in income. This phenomenon is called lifestyle creep. It’s when you increase your spending as your income grows—without actually increasing your savings or investments.

For me, even as my income from my bookkeeping business grew, I had to remind myself to keep my expenses in check. Yes, there were times when I wanted to splurge on something new, but I had to ask myself: "Do I really need this?"

One thing that helped me stay on track was setting clear financial goals. Whether it's building up an emergency fund, saving for a home, or paying off debt, having a purpose for your money keeps you from splurging on things that don’t align with your bigger goals.

3. Try the 50-30-20 Rule

The 50-30-20 rule is a simple framework for budgeting that works for most people: 50% of your income goes to needs (like rent, utilities, and groceries), 30% goes to wants (like entertainment and dining out), and 20% goes to savings.

While I’ve found this rule helpful, I’ve also adjusted it to fit my own priorities. For example, I use the 20% savings allocation not just for emergency savings, but also for investing in my future—whether it's in business growth or retirement. The key is to find a breakdown that works for you and stick to it.

Automating your savings can make this process even easier. Set up an automatic transfer to your savings account as soon as you get paid. This way, you don’t even have to think about it. You’re paying yourself first, and that money will start to grow without any effort.

4. Reduce Impulse Buying & Mindless Shopping

I get it—shopping can be a fun escape, especially when life gets stressful. But I quickly learned that impulse buying was one of the biggest culprits behind my financial struggles.

A strategy that’s worked well for me is creating a “cooling-off period.” When I feel the urge to buy something, I’ll put it on a wish list and give myself some time to think about it. A week later, I often find that I don’t even want the item anymore. It’s amazing how much time can change your perspective.

Instead of shopping for things I don’t need, I’ve invested in myself by learning new skills. This has not only been fulfilling but has also helped me increase my income. For example, I’ve used Skillshare to learn video editing and business management—skills that have been invaluable to my business.

5. Track Your Spending

I used to hate tracking my spending. It felt like one more thing I had to do, and honestly, I didn’t want to see where my money was going. But once I started regularly checking my bank statements, I realized just how much I was spending on things I didn’t need.

Tracking my spending isn’t about creating a rigid budget—it’s about awareness. I go through my statements once a month and check what I’ve spent. Is there a subscription I’m still paying for but don’t use? Am I spending too much on food delivery or online shopping?

Having that awareness helps me make more intentional choices. I don’t need to eliminate everything, but I can cut back on things that are no longer serving me or my goals.

6. Start Paying Off Debt

Debt can feel like a weight on your shoulders, especially if it feels like the number is just getting bigger. But as I’ve learned, paying off debt doesn’t have to be overwhelming—it just takes consistent action.

One of the best things I did for myself was break down my debt into manageable chunks. Instead of focusing on the total amount I owed, I focused on paying off one debt at a time. I also took small actions every day—whether it was cutting back on expenses or finding ways to increase my income.

Reading books like Atomic Habits helped me understand that small, consistent changes can make a massive difference. The same applies to debt. You won’t pay it off overnight, but with patience and persistence, you can get there.

7. Eliminate Unnecessary Monthly Subscriptions

It’s easy to forget about all the little subscriptions that sneak into our lives. Whether it’s streaming services, apps, or memberships, these payments can add up over time.

One of the best moves I made was cutting out my car payment. I saved up and bought a more affordable car outright, which meant no monthly payments hanging over my head. I also took a look at my other subscriptions and found a few that I could cancel.

To get started, I recommend doing a quick audit of your subscriptions. Are there any you no longer use or need? Cutting those out can free up extra cash that you can put toward savings or paying down debt.

Conclusion

Living below your means isn’t about depriving yourself of everything you enjoy—it’s about making intentional choices that align with your financial goals. By cutting out debt, reducing unnecessary expenses, and focusing on saving, you can create a strong foundation for your financial future.

The road to financial freedom doesn’t happen overnight, but it does happen one step at a time. Start small, stay consistent, and remember that every little change adds up. Whether you're a single mom like me or just someone trying to take control of your money, know that these small actions can make a big difference in your life.

If you’re ready to start your journey to financial freedom, I’m here to help. You’ve got this!

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