The age-old advice is still true today as it was centuries ago: “Live below your means.”

image from www.goodway.com/hvac-blog

Yes, living below your means, on a budget, is the key to financial independence. It’s no secret that getting started on a savings plan is hard. But that is the only way, and here discipline is needed.

Do a little experiment. Look at your expenses every month and see all those bills that you are paying. You might be surprised to find out just how much they amount to.

It’s easy to dismiss cutting back on little things, as also my habit since many years ago. A few dollars a month won’t make a significant difference in the big picture. But a few dollars here and a few dollars there adds up to a few more dollars. When you cut back in a lot of small ways, you could end up with a lot more money at the end of the month.

This past months I have adopted some ways to save money, and I have practice the following  simple principles:

1). Waste Not, Want Not

One thing you can do that is good for the budget is stop wasting so much. This can apply to many areas in our lives. From eating to home heating, waste equals money going down the drain unnecessarily.

Cooking for the family instead of eating takeout or dining out is a great way to save money

If your home is not well insulated, you’re probably wasting lots of money on home heating and cooling. Insulating will cost some money up front, but it will pay for itself quickly.

It’s a well-known fact that many households waste an unbelievable amount of electricity. This can be prevented in part by using energy efficient appliances and light bulbs. Turn lights, televisions, computers and other devices off when you’re not using them, and open blinds to take advantage of the sun’s light during the day.

2). Do Yourself a Favor: Do It Yourself

Any time you pay someone else to do something that you could do yourself, you’re spending money unnecessarily. This applies to little things like buying coffee instead of making your own, as well as to larger expenses such as home repairs.

Many of us buy coffee or a soft drink from a convenience store or coffee shop on the way to work in the morning. This can really add up over time. Instead, make your own coffee, or buy soda in 2-liter bottles and pour some into a smaller bottle or cup to take with you. The same applies to lunches. Instead of springing for fast food, take a sandwich or something microwavable to work.

While we’re not all good at all types of repairs and maintenance, most of us can do some things for ourselves. Maybe you could change your own oil instead of paying someone else to do it. If the walls need painting, consider getting friends and family to help you do it instead of hiring a painter. Things like these can save us a noticeable amount of money right away.

When you add up the savings, little things can make a big difference to the budget. So take a close look at your budget and see what small expenses are lurking there. If you can eliminate or reduce them, it could positively impact your bottom line.

As the famous Chinese philosopher Confucius says: “A journey of a thousand miles begins with a single step.”

In the same manner, a journey to financial independence starts with a small savings.