CNN Explains: "Living Within Your Means"

In case anyone forgot how the global economy came to teeter on the brink of collapse, CNN recently needed to help a reader figure out the difference between “living within your means” and “living below your means.” Let’s see if we can’t constructively add to the conversation…

For anyone who’s still confused, “living within your means” means not buying stuff you can’t afford, expertly illustrated by the Saturday Night Live sketch “Don’t Buy Stuff You Can’t Afford!

Or, as CNN adds in attempt to dignify the question, save regularly and control your debt.

What about “living below your means?” Slow down, overachiever. First stuff some savings in your account and maybe we’ll address that one next time. For now, we’ll be happy if people stop spending money they don’t have.

The meaning of ‘living within your means’ [CNN Money]
(Photo: zengrrl)