Why are you broke?? The answer may surprise you...

I am a firm believer that we all, no matter how much money we make, can afford to live comfortably. I can hear you saying to yourself, ‘Yeah right', and you probably want to stop reading this article already, but hear me out. No, I am not talking about people who have fallen onto hard times, or had some surprises come up in life. But I think that any single, working person should be able to make ends meet. I can sense you still mocking me, and that's fine. But hear me out, and then let me know what you think at the end... Consider your income, your budget, and the following:

Where do you live? How big is your home? What does your home offer you that you couldn't get from a lesser expensive place? These questions may seem obvious to some, but many people live in housing that more than meets their needs. Most people see their rent/housing payment as a fixed cost when they are working their budget. However, this bill is a large chunk of anyone's budget, and should be the first figure you evaluate.

Here are some examples:

• Do you live in an apartment with, say, laundry in-unit? Of course, there is a price for convenience, but if you are struggling to make your income and expenses align, is it worth the, say, $50 additional rent per month, or $600 annually, to be able to do your laundry in your home, versus down the hall or around the corner?
• Do you pay to park? Parking spaces can run you $50-$250 per month depending upon your locale. That's $600 - $3000 annually, which is a huge chunk of change! Consider other options. It could be worth $3000 to spend 10 minutes looking for a spot on the street.
• Is your guest bedroom worth the additional expense? Additional space, be it bedrooms, offices, dens, or formal dining rooms cost hundreds monthly in additional rent. Sure it's nice to give your family a bed when they come to town, but unless you are really utilizing the additional space, a sofa bed in the living room is likely a much more economical option.

One final note on this topic... I often hear the argument that moving is an expensive proposition. Of course it is, but with some research, and some leg work, moving can be relatively inexpensive. Of course, evaluate your situation, but generally if you will save at least $25/month, moving is easily a wise option.

How do you live? What do you do with your free time? How do you spend time with friends? Sure, no one wants to become a hermit in order to live within their means. But it is entirely possible to spend less money on your favorite activities. Here are some suggestions:

• Catch up with friends on weekdays. There are inevitably specials, even at the nicest restaurants, on weekdays. So when you friend calls to see if you want to get drinks, suggest doing it on a Thursday. Then take advantage of food and drink specials in your locale on that day of the week. It may take a little investigation, but this is a really simple way to still socialize while saving money.
• Have a party, but don't go shopping for it. Instead, as host, assign every guest something small to bring. With a few people bringing drinks and a few bringing food to munch on, everyone will have a fun and inexpensive evening, and all you'll have to do is clean up the next day.
• Enjoy the outdoors. Rather than paying for dinner and a movie, instead picnic in the park and take in a local high school sports game. Or take a bike ride to a patio diner for an awesome dinner of chili cheese fries. Even window shopping and grabbing coffee is a great way to spend a day without spending dinero (go shopping in an area that is totally out of your league price-wise, so you aren't tempted!).

The idea here is to think outside the box, and to notice and take advantage of what options are around you. Sure it requires some creativity, but your friends and family will likely admire that you have come up with something new and original to do, rather than the same old, same old.

What do you drive? This is the BIGGEST monthly cost that people overlook. If you have a car, it is probably because you need one. Understandable. However, people very often drive a vehicle that costs them way more than they should be spending on transportation. It's just a car! Not a status symbol. Consider these few things with respect to your ride:

• Go on Kelly Blue book, http://www.kbb.com/, and price your car. Now price the same model as a year older with 10,000 more miles on it. The difference between those numbers is what it is costing you to drive that car, and that is in ADDITION to your monthly payments on the vehicle. Shocking? Then you should reconsider what you are driving.
• How many miles does your get to the gallon? If you are driving a guzzler, or driving an SUV when a sedan would meet your needs, then you should reevaluate your vehicle choice. With gas at $2.50-$3.50/gallon, you may be wasting money and not even thinking about it.
• How much time do you spend on your car? If you drive around all day for work, it makes sense that you want a comfortable car. However, if you spend ten minutes in your car each way to work, or only use it for errands on weekends, there is no reason for anything but an economical ride if you are having trouble staying within your budget.

Haven't you heard, and this is not myth, that most millionaires drive Toyotas and Fords? And cars are a terrible investment, since they lose value from the moment you start driving them. So drive a vehicle that meets your needs. You don't need to get a beater, but you don't need a Beemer either.

And finally, What is your attitude toward money? Don't be caught up in keeping up with the Joneses. It's trendy now to be smart about money and finances. And people, especially people who know you, will be much more impressed with the fact that you can live within your means than that you are buying $12 martinis. Set goals for the money you start to save, so that there is a tangible reason to trim your budget. Begin to identify the wasted money in your life. Start looking at the money you spend when you don't have to as money you are throwing away. What's more, consider the satisfaction you get from having a bank account with money in it over the satisfaction you get from spending money on a nice dinner. No one is saying you can't do both! In fact, I am saying just the opposite, you can! You may just need to reconsider how you go about doing it.

So are you still in disagreement? There are always naysayers, and there is always an exception to every rule. However, if you re-evaluate your budget, and the way you look at some of the very basic expenses in your life, you will likely find that living within your means is easier than it seems.