Is Living Within Your Means Practical Financial Advice?

finance tips

Is Living Within Your Means Practical Financial Advice?

Most personal finance bloggers, influencers, media personalities agree on one thing: The key to financial prosperity is by living withing one’s means.

This is fine for those who generate enough income to experience what most Americans would classify as a comfortable lifestyle. These are people who are managing their basic needs without any worries. They pay all of their bills on time, every month. In addition, people who experience a moderate-to-high level of financial comfort are able to spend a nice amount of discretionary income without fear of self-destructing or living irresponsibly. It’s easy to live within your means when you have plenty of financial means to properly manage. But what about those who aren’t financially comfortable?

There are plenty of Americans who experience fear and discontent every month when it’s time to pay their expenses. They often don’t have enough to pay their bills on time, so they pay a small amount on the balance. They certainly don’t have enough for discretionary spending. While they try to do the best they can with their limited monthly resources, they simply can’t make ends meet, let alone set aside money that would allow them to stockpile extra funds. Considering people in this position, living within their means isn’t living at all!

Telling someone that they should live within their means might work for some, but for others, the key to financial prosperity is developing their income so that they can aspire to live with better quality means. Not only does this apply to those who still work for a living, it also applies to anyone preparing for retirement. After all, retirement years means that the days of collecting earned income are over, and yet, today’s retiree could live another 20-30 years past the standard retirement age of 67

There’s an insurance product that allows seniors to add money to their monthly income in order to experience dignified, enjoyable means. This product is called an annuity. Annuities are sold by licensed insurance brokers, and they provide either a lump sum or a monthly payout after a life insurance policy has matured in cash value.

If you’re already familiar with or own an annuity policy, then congratulations! But if you find that you’d rather hold on to the money you’re spending in order to upkeep your monthly premium on the policy, then reaching out to a certified annuity sales broker should be the next step to you’d take. You’ll be able to receive a lump sum cash payout in exchange for the sale of your annuity. You might find that this is a better scenario for your lifestyle.