When you live below your means, you find that things work a bit better. I understand the basic idea of living within your means, but you need to take it to another level in order to thrive financially.

For those of you who are living beyond your means, living within your means is a good goal to have. But it is simply the first step. Living within your means is spending what you make. Not more than you make.

Living below your means is saving. It is spending less than you make. Now, doesn't that sound good.

And this doesn't mean that you have to sacrifice and do without just to get by. It means that you have money to do with as you please. There is no need for a credit card when you have the money in the bank.

Find ways to cut your spending and your bills. Look at what you are actually spending each month. I was surprised to find that my husband and I were spending hundreds from the ATM each month with no idea where it was going. Once we made the ATM off-limits, we were not only able to better control where the money goes, but we cut back our spending drastically. We don't miss what we were spending the cash on, because we really don't know where it was going.

But now we know where it is going. It is going where we want it to.

A great way to live below your means is to forget about a portion of your income. If your employer offers the benefit, have a portion of your paycheck automatically put in savings, with the rest going into your checking. If you never see the money, you won't miss it. You are living below your means without having to sacrifice a thing. It may mean that you can't spend as much at the mall later in the month, but it also means that you are building savings.

Don't just stop at making it from paycheck to paycheck. Wouldn't it be great to have enough money that you don't wait for the next paycheck to roll around. If you don't spend it all each month, eventually, you will know what it is like to do more than make ends meet. You can tie them together.