10 Tips to live with half your salary

Have you ever wondered if it is possible to live on half the salary? Although it can be quite a challenge, it is certainly not an impossible mission, especially if you develop good financial intelligence habits.

This is why, in order to keep your finances balanced, avoiding deficiencies or excesses, it is vital that you learn to manage your money well.

And this implies, among other things, understanding how savings work, and why it is so important when it comes to building your assets. 

Learn to live with half your income:

Living on half your salary does not have to generate frustration, inconvenience, much less debt.
On the contrary, people with a high degree of financial intelligence resort to this practice more frequently than you might imagine.

It is crucial that you know some basic principles of the psychology of money , including the powerful culture of saving, to be successful.

Today you will learn ten practical and simple recommendations with which you could start living with half your income:

1. Spend on a budget

Personal budgets represent a critical success factor. This is because they allow you to set limits and financial goals in the short, medium and long term.

They literally work as a kind of economic guide, and therefore, they clearly indicate how you should manage your money, and what your financial behaviors are.

Be sure to define your fixed expenses (such as those related to the purchase of food or the payment of basic services, rent or mortgage on your home).

As well as possible unforeseen expenses that could arise in the month, and of course, your income or money receipts.

If you do not have a detailed and punctual budget, it will be very easy for you to fall into excesses and develop bad financial habits, such as:
  • Spend more money than you produce.
  • Make unnecessary expenses.
  • Incur debts.
The idea is that you adjust all the parameters of your budget to half of your salary, so that your accounts maintain an accurate relationship with your income.

For example, if you generate $1,000 per month, your budget should be set at $500.
Believe it or not, this financial planning tool will help you visualize your real and necessary expenses throughout the year, and will make you rule out those that only silently impoverish you .

2. Save consistently and intelligently

There are people who do not understand how savings work, and therefore consider that saving a little money a month is enough to protect their finances.

The truth is that savings must have a structure and a meaning. That is, you must aim for specific goals and you also need to stick to a plan.

That is, you cannot improvise when it comes to saving, because this will keep you away from your financial independence .

Experts say that you should rely on various savings methods , rules or strategies that are capable of offering you real and quantifiable results.

There are currently dozens of them, such as the 50/30/20 method, the 24-hour rule, or the practice of not spending any kind of money for seven days.

Each one of them attends to a specific philosophy, but in general terms, they pursue a common goal: that you exercise greater control over your finances and that you be more conscious with the use of your money.

The importance of saving strategically:

Saving consistently and intelligently is the key to success. According to a BBC report , the best thing to do is that your savings equal one annual salary.

This means that if you earn $50,000 a year, your minimum savings limit should equal that amount.
Now do you understand why messy “saving” is neither wise nor ideal? Although theoretically it will help you spend a little less, it will hardly bring you closer to your financial freedom in the long term.

If you want to live on half your salary you need to familiarize yourself with the culture of saving imminently.

3. Work on your financial intelligence

Believe it or not, if you don't work on boosting your financial intelligence it will be very difficult for you to learn to live on half your salary.

It is important that you understand the psychological game of money and shopping, and that based on that you retrain your brain and your mind so that you do not fall into excesses.

One of the most difficult tasks you must perform is to assume savings as a fixed expense.

If you assume it as a commitment that you must honor monthly, as would be the case with your health insurance payment, or your mortgage loan , your mind could play in favor of your financial future.

You need to change your way of thinking. If you succeed, you will understand that it is completely possible and convenient to live with half of your income, and that this should not translate into deficiencies of any kind.

According to Forbes , when you change your mentality regarding money, important transformations are also generated, such as the enjoyment of new financial habits.

Among other things, you will not see saving as something optional, but as a fair and necessary obligation so that sooner rather than later you can live the life of your dreams.

4. Do not create false expectations

If you really want to start living on half paycheck and enjoy the whole process, you need to have realistic financial expectations.

For example, if your monthly salary is $300, and you are planning to live on $150, it would be illogical to plan a trip to London based on that budget.

However, you can allocate a percentage of that money to other more modest forms of fun, enjoyment and entertainment.

Suppose you decide to allocate $30 to your recreation. The idea is that you do activities within that range, such as going to the movies, eating ice cream, going for a walk or going to the theater.

If you make sure to do what you like with that money, it is very likely that you will adapt to this new way of life, and above all, that it will be favorable and pleasant for you.

The most important thing is that you be realistic and that you do not lose focus on the ultimate goal: building your wealth and being financially solid throughout your life.

5. Use your credit cards wisely

You'd probably be surprised how many people use their credit cards indiscriminately. That is, without understanding that the money spent is not theirs.

It is impossible to live on half your salary if you are part of that group of individuals who do without cash, but who frequently use these financial instruments.

Do you wonder why? It's simple: because credits are nothing more than loans that you must repay with interest.

And while they seem like great lifesavers, credit cards can quickly and completely destabilize your accounts.

Does it make sense to pay two or three times as much for an object on credit, because of the interest?
Asking yourself these kinds of questions will not only save you unnecessary expenses, but it will strengthen your financial intelligence.

6. Say no to the poverty mentality

The poverty mentality is one of the most harmful limiting beliefs for man, and consists of focusing on what is not yet available, or what cannot be achieved financially.

Generally, these individuals have a deep fear of failure and refuse to think prosperous thoughts or financial abundance.

Living in that constant state of negativity and financial worry, they find it impossible to plan or control their expenses and income.

At the same time, they do not conceive the idea of ​​living with half of their income, because instead of seeing it as a clear decision of maturity and intelligence, they assume it as a calamity.

7. Avoid ant expenses

Ant expenses impoverish you slowly and silently. That is, they attack your finances without you realizing it.

Payment for subscriptions that you never take advantage of, memberships to clubs that you don't attend, bank fees and the constant purchase of fast food could be some of them.

Do a quick calculation. Let's say you earn $400 a month and want to live on half your salary , which would be $200.

Do you think it would be possible to achieve this by keeping your gym membership? The one you only attend once a month and which represents 40% of half of your income? Probably not!

Take responsibility for your expenses, take control and start balancing your accounts consciously and effectively.

8. Optimize your purchases

Nervous, impulsive or last-minute purchases have the power to upset your budgets (no matter how disciplined you try to be).

Accordingly, you should optimize them beforehand. This involves planning the day, or season, in which you will shop, as well as setting a sensible spending limit .

Once again, you must adjust your consumption pattern to the income you live on per month and your real needs.

Buying a boat is not essential to live, especially if you live far from the sea. That's what it's all about, becoming aware and not buying for the mere fact of spending money.

So, if you want to support yourself with half your salary, it is obvious that your purchases must be adjusted to that amount.

So you will have to be a more educated and responsible consumer if you want to maintain this habit in the long term.

9. Stay out of debt

People who try to live on half the salary , and do not define a good strategy, can end up drowning in debt.

They are simply more likely to trade one problem for another, arguing that having less freedom to spend forces them to borrow.

This is not only an irresponsible and unethical act, but it shows that they are not ready to take their finances to the next level.

Consequently, they need to educate themselves in financial matters as soon as possible, in order not to continue making these mistakes in the future.

The good thing is that they can take advantage of all the free resources that are available on the web to nurture their intellect and take charge of their financial planning.

10. Join a savings club

If you think that you are the only one who wants to live on half the salary, you are wrong. In fact, there are many savings clubs that pursue this goal and which you can easily join.

And in case you don't have access to any of them so easily, then don't think about it anymore and create one for yourself.

This could be made up of some members of your family, or by certain friends or relatives who also find it difficult to manage their money efficiently.

This support network can propel you to success and keep you motivated longer. At least until you are convinced that you do not need to spend every penny you receive each month to live in a comfortable, pleasant and stable way.

Living with half the salary is feasible:

If you put these financial tips or tricks into practice, you could start living on half the salary without having to incur deficiencies, defaults or debts.

You just need a little focus, motivation and discipline to execute the first changes: those that manifest in your own mind.

In addition, it is crucial that you educate yourself financially and learn to make better decisions regarding money; This way you will make it work for you and not against you.

    Font Size
    lines height