Disclosure: This post may contain affiliate links, which means we may receive a commission if you click a link and purchase something that we have recommended. While clicking these links won't cost you any extra money, they will help us keep this site up and running. Please check out our disclosure policy for more details. Thank you for your support!




How to enjoy life with less money


financial problems

Lack of money is stressful. It is quite normal to feel worried, anxious at difficult times. Job insecurity, redundancy, debt and financial problems can all cause emotional distress. Managing money during such financial problems without stress is a challenge.

Do you know 76% of the people in the world identify money as the significant cause of stress in their lives? Why is it so?

Money related stress is not just about a shortage of Dollars/Rupees. It is more than that.
Instead, the culprit is the way we think about and interact with money. The obvious solution is to add more money, but this may be temporary escape from the crisis. In return, anxiety crops up abruptly. All that is required is to think differently about money and bring in your positive approach in dealing with the crisis.


If you are poor, a little more money can give you everlasting happiness. In a country that is economically growing, if you have a place to live with ceiling fan to beat the heat it sounds satisfying. On the other hand, if all your basic needs are satisfied, then do you feel more money can buy more happiness? Not necessarily, you certainly robbed of all the happiness that you are longing.

Fighting for money can drain the joy out of anyone’s marriage life, ceasing friendly ties with your friends and relatives. Chasing after money can also severely cost you of all the opportunities to concentrate on most important moment in life. It is unfortunate, that we have so many people in the world crazy after money and are willing to part anything in exchange for money.  

The truth is that if you have better control over your finances and ways to manage money; you have less money stress in life. Obviously, no stress means happy living. The secret is that if you have full control over your investments, you can choose to save money. Saving your money at time when you have good earnings can reap benefits at times of hardships. You need not have to beg or borrow with anyone. This is the biggest drudgery.

6 steps on how to cope up with money stress   


  1. Organize your spending:

You do not need any sophisticated tool or a professional to support you. All you need a sort of system that is simpler to work with and monitor. Let it be a system that flashes you the moment anything goes out of your control. Concentrate on the four basics Income, Expenditure, Debts and Savings. You can have internal splits against main headings. For instance, while Expenditure is the main heading, Fuel expenses, Phone bills, medical expenses etc are the sub headings. As you fill up the expenses and debts calculate also the percentage of the income spent. This can be your matrix for identifying the highest to lowest contributor of your expense. Benchmark a percentage value of expenses above which you need to keep a watch to curtail them. A month wise monitoring graph would be ideal to flash you the expenditure trends. This is an interesting tool to keep you abreast about your finance position anytime.

The most important thing is to ensure that you update this data on a daily basis every income, expenses. You also need to have a mechanism to tally the figures updated in this sheet. Spend everyday 15 minutes to browse through the expense register to find out any abnormal expenses. At the end of the month summarize the month’s expenses and compare it with the previous month and before. Notice the trend and identify expenses that are increasing or steady in nature. These systems will give most likely answer to curtail any avoidable expenses.

  1. Sensible Spending

If you have trouble living within your means, you need to identify the expenses that pinch your pocket the most. Simply scan through your last month's expenses. Perform a Pareto analysis (80: 20 Principles) “Twenty percent of the items that contribute 80 percent of the total expense by value”. This is a principle to prioritize your expenses.

Curtailing unwanted usage of your vehicle even short distance can reduce your fuel consumption. This is a great portion of the monthly expense. Likewise, there are many ways to make deals with you to live with less money (within your means).        

  1. Minimize Debt.

In today’s economy, affording a house, or planning for a renovation in the house has become a dream. One needs to depend on loans. Borrowings managed based on your re-paying capacity. Find out suitable avenues that fit in your capacity. Strike a better bargain with your creditors. Once done, be careful to avoid penalties and fees that banks are charging mercilessly. On time, payment of bills is the only way to have control on your expenses. If need be barring for the essential items cut down all unnecessary expenses that eat away your income. Be choosy in spending to compensate the amount you need to repay. Preferably, a discussion with your family members to explain the need for controlled spending can be helpful.

  1. Earmark 15 percent to 20 percent for your monthly savings from your income.

Another mental shift you must make to achieve financial freedom is to change your thinking about money from spending to saving. W. Clement Stone said that, “If you cannot save money, the seeds of greatness are not in you.”

The moment you start saving money, you tend to have a total control on your financial issues. You automatically start driving yourself to allocate a portion of your income towards savings account. Arrange to deduct a sum from your income at source itself, thereby preventing the temptation of spending. Joining a good paying mutual fund scheme having systematic investment plan would be ideal. Arrange a system, which automatically draws a portion of the money directly from your savings account.

The most important fact is that you can save if you are strong enough to live within your margin of your take home income. This is a very difficult situation, but once you become a good financial manager, you can definitely save better. It is a practice evolved out of experience. Therefore, budgeting, tracking your expense and paying your bills timely can translate better savings. Start with small level savings, the moment you see your savings account accumulating, this will tempt you to increase your savings level.

  1. Sincere Goal setting

The first step to get what you want in life is to decide what you want. Visualizing what you want is the key to goal setting. The more practical you are in goal setting the more the chances of achieving your targets. Please bear in mind that along with goal setting you need also plan a road map to achieve them. This practice helps you to visualize your way to the goal. You may need many preparatory activities before you start.

It would be professional to write down your financial goals. Figure out the steps required to achieve them. Fragment them into manageable parts. For example, if your goal is to save rupees 1, 00,000 by next year. You need to work from now. Start calculating the amount saved per month and then amount saved per day. Roughly, per day rupees 300 would be a small amount. Try to find out which expense of yours avoided. May be your practice of having food outside with you friends can be avoided. Quitting bad habits like drinking, smoking can add to this amount. These are passive savings.
Lastly, a weekly review of your goal setting is necessary. This can give direction for your next week plans.    

  1. Learn to be content with what you have.

The trick to this is to browse through your achievements periodically. This will give you encouragements to do more. Set your mind with minimum needs for contentment. Most people believe that money buys happiness, independence, security and status. However, the irony is that these people have given money the power to control them. As a result, these people keep wanting more and losing control on the spending.
The best way to take control on your spending is to adopt good practices of planning, organizing and saving.


Boundaries makes us free from anxiety, therefore they are life giving.

The enemy of life is forgetting our boundaries. Whether they are social, financial, or moral, boundaries provides good structured ways to manage money and a guideline for life. Boundaries motivate us to discover happiness whatever be the current situation. As explained above careful spending plan is a helpful tool—the financial boundary helps us free from anxiety about money. It allows us to recognize we do not have to spend more money than we earn to be happy. There is no joy in living beyond your means—only stress. How to enjoy with less money requires dedication and patience to live within the boundaries of your income. In addition, find more life because of it.  


No comments: