"Living Within Your Means"

[Bini]

The LDS Church encourages its members to "live within their means" and avoid debt. But what does that translate to? Is it simply saying to live modestly? Or perhaps it's saying to live as luxurious as you want as long as you can afford to? What's your interpretation and do you live by it?

[NeuroTypical]

It means don't spend more than you earn. It means pay cash instead of using credit. It means save.

Yes, if you are filthy rich and can afford to pay cash for 4 houses and a dozen cars, you'd still be living within your means. You may be running afoul of some other commandments about being humble, but you'd be following the counsel.

LM

(a long way away from being filthy rich)

[Just_A_Guy]

It means don't spend more than you earn. It means pay cash instead of using credit. It means save.

Or, in other words . . .

(Frankly, that video isn't quite as funny as it used to be now that I'm doing bankruptcy work, because there are actually people who think that way.)

[GADBabaganoosh]

I need to learn how to budget....

[beefche]

I need to learn how to budget....

Give me your money. I'll budget it for you.

[ADoyle90815]

It basically means that it's better to have the cash to buy something than to use credit all the time. Also, buying more house than you can afford is a bad idea, especially in this economy where there is no such thing as job security. Do what you can to stay healthy as medical expenses that aren't covered by insurance are a leading cause of bankruptcy.

[pam]

If I make $1000 a month, I can pay tithing and pay myself 10% and still have money to cover all my expenses that is living within my means.

I've had a set back this week. I was out of debt totally, but my job doesn't offer health insurance for the first 90 days. Well guess what..after an ER visit, doctor office followup and 5 days of missed work, I'm back into debt. So I'll really have to work to get this all paid off again.

[JudoMinja]

Living within your means is quite simply not spending more than you earn. However, I think there is more to it than that.

There are many things in life that people get but don't really need. And there are many emergencies that come up that simply cannot be budgeted into our monthly spending. When we can let go of the things we don't need, plan ahead and save for those emergencies, and always have what we need, then we are truly living within our means.

There will certainly be things we will need to go into debt for, because no one can plan perfectly to be ready for every emergency and every big expense, but as long as we are prepared to handle those debts and spend our money wisely, we will be able to make it through financially.

[Hemidakota]

The LDS Church encourages its members to "live within their means" and avoid debt. But what does that translate to? Is it simply saying to live modestly? Or perhaps it's saying to live as luxurious as you want as long as you can afford to? What's your interpretation and do you live by it?

ZERO DEBITS....or close to zero as possible.

[Hemidakota]

It means don't spend more than you earn. It means pay cash instead of using credit. It means save.

Yes, if you are filthy rich and can afford to pay cash for 4 houses and a dozen cars, you'd still be living within your means. You may be running afoul of some other commandments about being humble, but you'd be following the counsel.

LM

(a long way away from being filthy rich)

We no longer have any credit cards but use a debit visa. Even our vehicles are paid for...

[Traveler]

There is one very important principle left out of this discussion and is the frist principle of living within your means. This principle is one of the first commandments given in scripture to mankind.

It is the principle of work. Thus through your work you have means. The real principle is to not live beyond your desire to work. If you cannot take care of the house where you reside it is living beyond your means to buy another home that you cannot take care of - even if you have the money.

Likewise a parent that provides things to their children without teaching their children to take care of what has been provided is encourging and teaching their children to live contrary to the principle of living within one's means.

The Traveler

[aharon]

That is a deep insight, Traveler... good point. I wanted to bring up something as well, and that is debt. We should stay out of debt, but however, don't let the principle of not charging up your Department Store card stop you from starting a small business because you refuse to take out a bank loan.

Taking out a loan for capital that will in turn produce more money, is what people in the entreprenuerial world call "good debt" for this is the type of debt that allows you to seize an oppportunity and increase your (and in many instances the community's) abundance in the future.

I think this is why the church says that it is ok to go into debt for college education, for it would be considered "good debt" (having said that, don't be dumb like me and take out all the loans you can while in school, cuz you do have to pay those suckers off!)

However, when going into good debt, it should be done within your means. For example, if the business goes belly up, make sure that you can still handle paying it off. Don't become one of those Fanny Mae derivative buyers and then get stuck with a billion plus bill when your investment goes bad :)

[Guest mirancs8]

I do not use nor to I carry a credit card with me. I do have one but it sits in a desk drawer for times when I am going to rent a car and such. I always pay cash/debit card. Considering that I pay my 10% tithing, feed 2 growing boys, and financially carry a households bills alone I think I do very well. Still have money left over even when I am still paying off credit card debts my ex ran up (1/2 the debts).

I am planning a road trip in May with the kids and I started saving a few weeks ago for it. Planning really helps to keep you in a budget.