Adding up little costs
Many people in our society, no matter how much money they make, live paycheck to paycheck. They do this because they spend all the money they make rather than spending their money on what they truly need and then restraining their spending on things they want.
Living within your means doesn’t mean you have to live like a pauper. It just means making decisions in the short term that will lead to long-term results.
For example, when you examine your spending patterns, you may see that you buy a latte every day. True, a latte only costs about $3, but if you buy one every day, that's $21.00 a week. That's still not a lot of money, but over the course of the school year, that will add up to $1092. In four years of college, that's more than $4,368 you'll spend on coffee and steamed milk!
If you gave up your latte habit, or bought an espresso pot for your dorm room, you could put this $4,368 toward a car when you graduate, rent for your first apartment, or clothes you'll need for your first job.
Really, it's the little things in life that you have more control of in your spending. It's pretty hard to avoid having payments for rent, student loans, car payments and insurance, and other life necessities. It's easier to cut out or trim down the little expenses that add up to a lot of money over the long term.