One of the best practices you can put into place that will help you get your spending and finances under control is to begin living as if you’re on a fixed income.
We typically think of fixed incomes as applying to senior citizens and other folks who are receiving some sort of financial subsidy. People in this situation have no opportunity to bring in more money unless they go out and find supplemental employment, nor does their income typically adjust based on inflation. Because of these limitations, people on fixed incomes must watch every penny and be intentional about how and where they spend their money.
What if you lived your life this way? What if you took a look at your monthly income and cut frivolous and non-essential expenses? What if you temporarily lowered your standard of living as far as possible and lived below your income? What if you put all that “extra” cash towards debt reduction, retirement, or paying off your mortgage early?
Keep in mind that we’re talking about temporarily living like you’re on a fixed income. If you decide to live well beneath your means while you’re working toward a major financial goal, you’ll feel like you’re living like royalty after you’ve reached that goal.
This is what Dave Ramsey calls living like no one else so that one day you can live like no one else.