If you want one secret of managing your money well and reducing worries, it has to be this.

"Spend less than you earn".

Now I know it's easier to say than do. But unfortunately, this simple rule of money management is not that easy to implement for many. This tip of spending less than you earn sounds straightforward but is sometimes daunting to put into practice.

Let's break it down into manageable steps.

Re-evaluate your spending habits

1. The best way to start the spend less than you earn journey is to write all your monthly expenses and see how this compares to your monthly income. This essential first step will help you determine the current state of your finances. Don't hide anything from yourself. It is always better to face the issue right now rather than suffer it for years to come

>> Life is choice, Choose wisely

2. Now, it's time to take a critical look at your expense list. Take a second look at this list and see if you have any expenses that can be eliminated or reduced. Be honest with yourself. Which expenses show wasting your money on things that aren't even important to you? Don't get disheartened if you find more items than you expected. Everybody has those blind spots in their financial life. Since you identified them now, it would be easier to manage that temptation in the future rather than blindly giving in to them.

Focus on keeping only the important and eliminating the rest.

For example, while there is nothing inherently wrong with spending five dollars per day on a Frappuccino, if your income does not support this kind of spending, it may be in your best interest to do without this small luxury for the time being. Instead, find an alternative that can give you equal satisfaction but at a much lesser price, or reduce it to once a week instead of daily.

3. Recheck your expense list. Ask yourself if you buy something to look rich or to keep up with others. Did you find a thing or two or more? Congratulations on your honesty. Please listen; you might already know this, but it deserves repetition. There is absolutely no point in going broke by trying to look rich. Stop it today! Learn to live for yourself, not to show off. Managing your financial status is far more important than keeping up with others.

4. If you still need to do this, invest in a good budgeting program to help you keep track of your spending and simplify your task. Check out the budgeting program available here on this site. It will help you keep a tab on your money and make your life simple and enjoyable.

5. Have extra money with you? STOP! Don't make plans to splurge it. Instead, use your surplus wisely – pay down debt, and Invest thoughtfully.

>> 6 Uncommon Real-life Budgeting and saving Tips

Increase the scope of your earning

It is another excellent way to stay below your mean. Increase your salary or earnings. Here are a few ways to achieve this. See which one interest you the most and start implementing it right now.

1. Your income is directly proportional to the scope of the job. Enhance the scope of your work to enhance your earnings.
2. Upgrade your skill set. Take online courses/workshops to upgrade yourself. Look for hands-on practice ways to gain experience. 
3. Look for better-paying opportunities in your industry.
4. If you are in business, look for broader promotion opportunities. Join hands with JV partners.

The possibilities are endless. Open your mind to see them, and wear your thinking cap to make it happen. 

If you find it difficult to live below your mean, go and expand your means first.

Learning to spend less than you earn is not for you to compromise little happiness in life. In no way should you compromise on your living standard and be unhappy. After all, you deserve access to everything that makes you happy. But it is necessary to develop this sound financial habit early on to avoid disaster in the near future.

“It’s not your salary that makes you rich, it’s your spending habits.” – Charles A. Jaffe.

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