8) Provident Living series #2. Living Within My Means (Wise Stewardship of Resources)

By Sindy Wakeham

What Does That Even Mean?

We've all heard the saying "live within your means". Some of the sayings or quotes and phrases we use can be so weird! Let’s not get lost in the meaning of the words. Most of us know from the context in which we’ve heard this phrase it’s about living frugally and not spending more than you have. Why? Because living above your means just leaves you with mega stress due to debt of course! There’s more to it than just staying out of debt.

Today, I’m looking at a few more topics in Provident Living as promised in my previous blog. Let’s start with finances.

Wise planning of our finances

This includes budgeting, avoiding and staying out of debt and wise stewardship of our resources.

Budgeting

How do you know if you ARE within or over your means without keeping records or keeping track? For more on that, I have broken it down in my book, Escaping the Dole to Blue Garden Cottage. It’s basically so simple. Split a sheet of paper (even the back of a large envelope), ‘coming in’ on the left and ‘going out’ on the right.

Put all your income in date order on the left, all the expenses in date order on the right. Add both columns and if you have money left in the income column you are within your means. If not...You need to make changes.  I suggest increase income and reduce expenses until you have enough left to save up too (for doing a home makeover, holiday, emergency repairs etc).

I told you, super simple!

Avoiding Debt

Debt equals hand cuffs, ball and chain or prison bars because that’s what it is and I’m not talking anything kinky! It’s a complete lack of freedom and autonomy.

Your debts own you and your money first before any other commitment, even family needs. Avoidance and non-payment of debts legally can get you into serious financial trouble even for small debts.

You can be taken to court as companies ruthlessly demand their dues as accepted by you in their contracts with you. It even implies theft as you’ve used money you are not paying back. You are in effect spending someone else’s money. You can’t escape it.

I heard a young person paraphrase a quote once. “There are those who understand interest and those who pay it”.  Treat Debt like a life sentence.

Oh, and credit cards, HP “buy now; pay later” (or rather forever). Creditors are NOT there to help you. They are there to make money out of you in the form of interest. A loan company or bank is NOT your friend. It is a business making money out of ‘serving’ you or rather indebting you.

Are there any forms of debt that ARE acceptable? 

That’s for you to decide but I suggest you avoid it like the plague and think very carefully before ever going down that route.  I speak from experience.

You would be amazed at how a tiny hovel of a house can become a precious palace that you’d be proud to show off (if that’s the kind of thing you like to do) with creativity and resourcefulness. Make it as small a mortgage as possible with the shortest term you can find and shrink it as soon as you can!  Owning your own property outright (you have the deeds for it without anything owing on it) is still the best security for your shelter needs.

Quick rant;  On May 13^{th 2024}, the UK gov. or banks, can’t remember which ones, announced making mortgages even longer term to ‘help’ young people. Sure! Pay a mortgage for more than 32 years so we can make even more money out of you and entrap you for longer! 

OK, rant over.

If you have a mortgage, you DON’T own your house. The bank or mortgage lender owns it until every last penny is paid. It’s up to you what’s priority for getting into debt but I suggest nothing that isn’t essential for permanent shelter or education for employment. NO, not even for that pair of shoes. 

Education is helpful for improving earning capacity.  Some of the richest folk don’t have further education after school. Higher education comes with massive debts that take decades to pay off...like a mortgage. I’m very grateful for the degrees that are required for those whose qualified careers look after us in all our societal essentials. There are many and medical qualifications for one of them, I would say are essential and need to be verified.

Refuse collectors and other so-called 'menial' employed people are also my heroes. The jobs labelled as menial are just as important for our ‘civilised’ existence. I’ve said it before; all work is valuable and important. You don’t need a degree for most.

Wise Stewardship of other resources (looking after and using what we have)

Do I really have to spell it out? Ok, maybe I do for some people. That heading almost sounds like ancient language. It means spend wisely, make do, be creative and resourceful. Those terms could be swearing for some people but that might mean that they aren’t as resilient as they might one day wish they were. It’s part of both self-reliance and self-sufficiency. Being frugal and careful of what you have can make you creative, inventive and resourceful. It also builds the resilience needed to handle any situation popping up in life.

At the risk of repeating myself, I cover this topic in my book. Be informed, be wise and make good choices. It’s a simple and general rule for life.

That brings me to;

THE CONCLUSION

Living within your means is a part of gaining that ‘good life’ we all long for. It makes the contentment I mentioned in my previous blog possible. Living within your means is NOT defeatist nor does it hold you back from progress. In fact, it makes progress easier because you have no to little debt, you have reserves to fall back on and peace of mind to free up time, all without getting into debt and the stress and entrapment that goes with it.

As we free ourselves, we are able to be more helpful and affective in our families and community serving others, which brings even more satisfaction and peace. How can we help others if we can’t even help ourselves?

As always, I love to hear from you.