What does living within your means really mean?

[Wiseacre]

Got into a discussion with The Rabbi about this, he thinks a credit card of $3500 is still living within your means. That is apparently the average these days; I say it depends on your ability to pay it off. If you have an average income X, and you spend on average X, then you are living within your means. Some months you go over, some months you don't, it evens out over time. But if you're exceeding X in spending on a regular basis and your debt is growing, then you are not living within your means.

 

[Truthmatters]

your correct.

and there are those who if they tried living within their means would starve to death

 

[Wiseacre]

your correct.

and there are those who if they tried living within their means would starve to death

Really? What're they spending their money on then?

 

[TakeAStepBack]

Got into a discussion with The Rabbi about this, he thinks a credit card of $3500 is still living within your means. That is apparently the average these days; I say it depends on your ability to pay it off. If you have an average income X, and you spend on average X, then you are living within your means. Some months you go over, some months you don't, it evens out over time. But if you're exceeding X in spending on a regular basis and your debt is growing, then you are not living within your means.

Essentially, you're right. The problem is that people in todays society believe that credit, equals savings or income. Having a credit line does not grant you additional wealth. The exact opposite. it grant you the opportunity to BORROW, on interest, more money than you obviously have in savings or at disposal.

Credit is not savings, credit is not income, credit is nothing more than the ability to acquire debt on interest.

Living in your means is just that. Keeping expenditures and consumption at levels that meet your level of income. I'm of the caliber that I live humbly in order to actually save additional money to put toward things I might wish to acquire in time. There fore my income is much higher than my designated expenditures. I deliberately live far under my income in order to provide additional savings, as opposed to paying for things I can not afford by becoming a slave to a creditor.

 

[Claudette]

Got into a discussion with The Rabbi about this, he thinks a credit card of $3500 is still living within your means. That is apparently the average these days; I say it depends on your ability to pay it off. If you have an average income X, and you spend on average X, then you are living within your means. Some months you go over, some months you don't, it evens out over time. But if you're exceeding X in spending on a regular basis and your debt is growing, then you are not living within your means.

To me it means not spending more than you make and living within your budget.

I do it every month. I live within my means.

 

[Truthmatters]

If YOUR MEANS are too small to meet basic human needs then you die

 

[BDBoop]

I have no debt. I have no credit. I will keep it that way.

 

[Truthmatters]

I have debt.

mortagages.


Its my only debt.

My assets are more than my mortgage debt.


It would be idiotic finacially for me to pay the mortgage debt off with my assests.

Credit can be used to build wealth if it is used correctly.

 

[tjvh]

Credit is nothing more than a High Interest Loan... Until people realize that, they are bound to fail. I saw a girl buy a Slurpee at 7/11 yesterday with a Credit card, and I wondered how many years it would take, or if she was "ever" going to pay that Slurpee off. And No, it wasn't a Debit card either.

 

[Truthmatters]

Nope you are just wrong

 

[tjvh]

If YOUR MEANS are too small to meet basic human needs then you die

Thanks for the most intellectually stimulating post I have had the pleasure of reading all day!!

 

[tjvh]

Nope you are just wrong

You disagree that a Credit Card is nothing more than a high interest loan?

 

[TakeAStepBack]

Debt is bad, credit is good. I have a ~50K credit line through 3 credit carsd adn have a few thousand on two of them in order to keep good credit standing. Good credit is helpful in acquiring lower interest rates on things like car loans, home loans or personal loans. Those are the types of purchases I think people should save their credit for. Going into hock over a piece of real estate (at least up until 2008) was a favorable debt load (assuming you can meet he monthly payments and then some). Because you're buying an asset that can be resold should you not be able to meet your obligations.

 

[The T]

Credit is nothing more than a High Interest Loan... Until people realize that, they are bound to fail. I saw a girl buy a Slurpee at 7/11 yesterday with a Credit card, and I wondered how many years it would take, or if she was "ever" going to pay that Slurpee off. And No, it wasn't a Debit card either.

I pay cash for everything. If I can't? I don't buy it...needs/necessities before wants.

 

[Truthmatters]

I charge things all the time and end up paying no iterest on them because I pay in full each month.

If your smart you use them instead of letting them use you

 

[Claudette]

I have no debt. I have no credit. I will keep it that way.

I have no debt and the only credit card I have is the one on my debit card.

I don't owe anybody a dime.

I live within my means.

 

[Truthmatters]

Nope you are just wrong

You disagree that a Credit Card is nothing more than a high interest loan?

only if you dont pay in full each month.

Have you NEVER lived like that?

 

[bigrebnc1775]

Got into a discussion with The Rabbi about this, he thinks a credit card of $3500 is still living within your means. That is apparently the average these days; I say it depends on your ability to pay it off. If you have an average income X, and you spend on average X, then you are living within your means. Some months you go over, some months you don't, it evens out over time. But if you're exceeding X in spending on a regular basis and your debt is growing, then you are not living within your means.

To live within your means has a different meaning to everybody.
Here's mine.
If I want something and I can't have it paid within the month I don't get it.
If I need something and don't have the money for it, I save or work a few more hours to get it.
I do not splurge I save for the rain day.
I waste nothing and save what others would not think of.

 

[Truthmatters]

I have no debt. I have no credit. I will keep it that way.

I have no debt and the only credit card I have is the one on my debit card.

I don't owe anybody a dime.

I live within my means.

You own your home outright?

 

[tjvh]

I charge things all the time and end up paying no iterest on them because I pay in full each month.

If your smart you use them instead of letting them use you

Until something bad happens in your life financially, then BOOM... Just like the housing bubble bursting, you will fail.