# V.I.P. Financial Success

What is a Very Important Principle for financial success?? When I graduated school I asked my mentors this question, and I got a variety of answers. ***But the one that I thought was all encompassing of other principles was live below your means***

## Live below your means

The first mentor told me don’t buy an expensive, flashy car, buy a nice but inexpensive one. The second mentor told me don’t buy a big expensive house, but buy a inexpensive, but comfortable one for a family. The third mentor didn’t tell me what car to drive or what house to live in, instead his advice was much simpler: ***live below your means.*** 

## How do I live below my means?

It was then that my third mentor gave very specific advice. He said create a budget and stick to it no matter how much your income changes. The specific plan had one plan and three goals. The first part was the plan:When you get your first job, create a budget for a modest house, a modest car, modest clothing, a modest vacation each year. Then every time you get a raise keep your old budget and save the raise in a savings account. This was the plan and then I learned the three goals: First, save your raises until you have 3 months of budget expenses saved. Second, once you get three months saved start working on saving 6 months of budget expenses. Third, once you have six months budget expenses saved keep going until you have one years budget expenses saved. Once you have achieved the third goal you will have accomplished three thing.

## What do I gain from living below my means?

First, you have learned to budget and save, and more importantly your wife and family will have learned this also. Second, you will have learned that a rising income doesn’t have to be matched by rising expenses. And more importantly your wife and children will have learned this also. Third, you will have become acustomed to wearing nice, but modestly priced  clothes, driving a nice, but modestly priced car, living in a nice, but modestly priced house, and taking a nice, but modest prices=d vacation each year. But the greatest gift of all that your budget and your savings will give you is time and peace of mind. 

## Why does living below my means give me time and peace of mind?
If you didn’t have a budget, and you didn’t prevent your expenses from rising with your income, you wouldn’t have enough money to pay your expenses if you lost your job or couldn’t work due to illness or injury. If your counting on every dollar in every paycheck you can’t take off work to attend your children’s events like sports, academics and social events. These things may not be seem important at the time, but is the difference between you being present in their lives, all of their life, not just on weekends or when you retire. 

# Living below your means is my V.I.P. 

So you see, living below your means gives you more the a larger savings account. It gives you peace of mind and time. Peace of mind is essential to good mental health. And time to spend with your family and friends is invaluable. Time is priceless and it’s one thing that once it’s spent it can never be recovered. That’s why the most important financial rule I have is to live below my means. 

@joefinance

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Joe Finance is a husband and a father, that also just happens to be medical doctor, writer, teacher and lifelong student of finance. You can read his other articles on finance at the Leofinance Website. Please check the Links below,

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## Other Articles by @joefinance

Article Four Pillars of Health [Link](https://leofinance.io/@joefinance/four-pillars-of-financial-health)

Introducing Joe Finance [Link](https://leofinance.io/@joefinance/introducing-me-joefinance)


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