5 Most Popular Ways to Live On Less Than You Make

Want to know the best way to live on less than you make? Here are exactly some reasons that will motivate you to live on less than you earn, so you can start saving money.

Live on less than you make is a concept I had never heard of until I was deep in debt. You see, people never talk about living simply. But, when life knocks you down, you gotta try a different way of managing your money.

I don’t know about you, but living on less was such a foreign concept to me. All I really knew was just how to spend money. And if I didn’t have any, I’d just borrow it, finance it, you name it. I did it!

I’m sure you’ve behaved the same way. Thinking that you can afford anything you want since you work so hard at your 9-5. And if you can’t, you’ll still find a way to buy it now and pay for it later.

You see, this way of thinking and behaving is what kept me broke, living paycheck to paycheck, and with $72,000 in debt (including student loans, credit cards, personal loans, etc).

Something had to change. And I’m sure you are doing all the research you possibly can to make sure you get out of debt, and stay ahead of your finances. So you can start saving money and start investing for your future.

As someone who had to learn to stop spending money, I am giving you the top tips on how to live on less than you make that I swear by.

You are going to learn all about how to live below your means, surprising ways millionaires live on less, and more.

After learning about all these money management advice, you are going to be a pro and super encouraged to start budgeting, saving, and living on less than you make.

This post is all about how to live on less than you make.

What is live on less than you make?

“94% of millionaires live on less than they make, and 95% plan ahead and save up for big purchases,” according to Chris Hogan, from the book Everyday Millionaires.

So, if that’s the secret to becoming a millionaire, then what does it mean to live on less? It just simply means NOT spending all your paycheck. And staying clear from all debt.

Just because you have the money to buy something, doesn’t mean that you should. Get it? Millionaires make it a priority to save money for huge expenses, they don’t finance anything. They do not pay any interest at all on anything because they plan ahead and stay away from debt.

If you don’t believe me, listen to what this millionaire says about becoming a millionaire, “the absolute secret is to spend less than you make. Live within your means and understand wants versus needs. Be willing to miss out on short-term fulfillment. No debt allows you to live on a lot less!” -Donna (from the book Everyday Millionaires).

If you are buried in debt, just like me, the least you can do is adopt a millionaire mindset. Be curious, learn how they manage their money, and adopt their style of living.

How To Live Below Your Means

1. Budget

I’m sure you want to roll your eyes or cringe when you hear the word budget. But hear me out, a budget is just a spending plan, YOU tell your money where to go. You are in total control of your money. And you decide how much you wanna spend.

Creating a budget reduces anxiety. Because you create a game plan for your money, which allows you to become intentional and avoid sliding into a misfortune. A budget helps you identify and stop any money leaks.

“Remember, 93% of millionaires stick to the budgets they create, compared to 77% of the general population. These people take the time to make a plan, but then they throw it out the window with impulse purchases and lazy spending,” said Chris Hogan, Everyday Millionaires.

So, be like a millionaire, manage your money by consistently budgeting. And don’t be like the general population who let their money slip out of their hands.

There are sooo many ways to create a budget, (I have a few blog posts that can show you how to budget and use the 50-30-20 budget rule).

{CHECKOUT: How To Stick To A Budget in 3 Easy Steps} {A Step-By-Step Guide On How To Set Up A Budget}

{CHECKOUT: How To Budget Money}

2. Financial Discipline

If you don’t develop financial discipline, you’ll be always at the mercy of your wants and sloppy spending. Not making real traction, always in debt, and keeping up with large payments.

No wonder people can never retire.

At my work there are so many nurses that are older than 65. There’s even a few nurses that are still working in their 70s!

It’s been great to learn and work beside them. But, I swore to myself that I would ever want to work long shifts on my feet in my 70s.

So, why are these nurses still working long shifts? It’s simple.

They never learned financial discipline, they lived way above their means. Not investing and saving for their retirement. Never paying their house off. And the list goes on and on.

But, I’ve personally asked them why are you still working? They all said they have huge mortgages still and other huge financial obligations.

Isn’t that sad?

I don’t know about you, but I sure don’t want to be working as a nurse when I’m in my 70s. So, if you too want to retire early and have a paid off house before age 65, you better learn now how to live on less than you make.

3. Ditch Instant Gratification

Learn from this millionaire he says “if you want to do something that is not in the budget, I earn the money throw a second or thrid job” (

Let that sink for a minute. Millionaires don’t borrow money or blow their budget, they live within their means. Like he said, if he wants to buy something he can’t afford, he doesn’t swipe a credit card or gets a personal loan, or borrows money agains the house.

What does he do? He works hard getting a second or even a third job to fund this huge thing he wants to purchase that’s outside of his budget.

Do you get it?

Millionaires don’t pay a dime in interest, they don’t ever need to because they don’t ever borrow money like broke people do.

Millionaires work hard for what they want, and ditch instant gratification.

Like I said, they work hard at saving money and planning and that’s how they pay for everything in cash. Even if it takes a lot longer to get the money. They are ok sacrificing for a little while even if it means having 2 or 3 jobs.

So, yeah! I’ve been handling money so wrong all these years, no wonder I was always broke. No one taught me how to manage money, I had to take responsibility for my money mistakes and learn from zero. And so can you!

4. Don’t feel the need to upgrade

Did you know that Warren Buffet still lives in the same house he bought back in the 1970s? That’s right! Most millionaires don’t move or upgrade their house, or keep up with the latests fashion or gadgets.

I know you’d be shocked to find this out. But it makes total sense, they avoid lifestyle creep. Because moving comes with a high price tag.

Millionaires also avoid keeping up with everyone else and don’t feel pressured to buy the latest car model or have fancy things to impress others.

Like I’ve said before, millionaires stay away from debt. They are pros at living below your means.

“96% of millionaires never carry a credit card balance and 95% plan ahead and save up for big purchases,” said Chris Hogan Everyday Millionaire.

They are focused on saving and investing then on spending money.

5. Don’t focus on the challenges and distractions

To truly be able to live on less than you make you’ll have to make major behavior shifts and mental shifts too. You have to be ok being uncomfortable with this new way of living.

Listen to Chris Hogan, he says it better:

“You’ve got to let go of the stupid things that are stealing your potential– things like debt, inattention, and wandering aimlessly through life. Instead, you’ve got to take on millionaire behaviors–like living on less than you make, budgeting, and making active, intentional decisions about who you want to be and how you want to live.”

Like he says you’ve got to look at the bigger picture and don’t get bogged down with all the sacrifices and challenges you’ll face.

He believes anybody can become a millionaire with a little bit of planning and financial discipline. You can do it.

Because what’s the alternative? Working until you are in your mid 70s and still pay for a mortgage?

Ain’t nobody got time for that!

Alright that’s it for tips on how to live on less than you make

I am curious to see which millionaire money mindset you are willing to try!

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