What does it mean to be living within your means?


It doesn’t mean you have to be a tight-ass. It doesn’t mean you have to be frugal. It simply means not wasting your money on unneeded items.

The measure of success.

Why spend all your hard earned income on cars or designer clothes? To impress others? Where will this get you in the future?

If you have disposable income, why not funnel this into income producing assets so that you have money once your work-based income has stopped?

Developing a long term income producing strategy, or capital producing strategy, will ensure you can live a comfortable lifestyle throughout retirement.

Compounding effect.

Investing in property has the power to deliver compounding growth. The more properties you own, the more capital you will accumulate through each property cycle. The same can be said of rental increases.

Having a compounding income stream is a smart way to balance out the shrinking effect of your work based income as you ease into retirement. For example, it may enable you to cut back to three days of work each week without affecting your overall weekly earnings.

Retiring when you are still young.

If you are still young and have recently earned a pay rise, you may be tempted to spend more. But if you can already live comfortably on your initial salary, funnelling your extra pay into investing can help you create your own pay increases over the long term.

The more passive income and capital growth you can create, the less you will need to work further down the track. This means you can have that lifestyle you always wanted without being dependant on full-time work.

Putting your family income to work.

Coming from a working-class family, Nathan has seen first-hand how it is possible for families to live off $50,000 a year. If you have a family income of $200,000, it is possible to spend a few years on a good, solid budget in order to invest a huge amount of your income into income producing assets.

That way, you can put yourself in a position where your family can live very comfortably without you and your partner needing to work full-time.

Have you just paid off your house?

You may have spent the last 20 years or so paying off the family house – now what? Don’t be tempted to throw away your income on cars or holidays.

Think about where you are going financially and how much you have for retirement.

You could use the last 15 to 20 years of your working life to set yourself up. Or you could spend your money without worrying about it and find yourself struggling later on.

Take back ownership of your life.

You may wonder why you should hold back on buying all those items you have worked so hard for. You may think investing is boring and not worth the effort.

But once you have all the fashion and gadgets you have wanted to buy, will you be in a better position? Will you be financially free? Or will you still be tied down to your job for the next 40 or 50 years?

Why buy a new car if it means you will be stuck in peak hour traffic, for a couple of hours every weekday, for the rest of your life? Wouldn’t you rather be driving down the coast for a week away? Or, choosing to avoid peak hour because you no longer have to worry about working?

Meet Kate …



Young Sydneysider Kate wanted to buy property, but the prospect of getting her own place seemed impossible.


Kate was a self-confessed shopaholic who spent the majority of her income on luxuries that she regarded as “reward for hard work”.


These luxury goods, however, hindered Kate’s ability to save, ultimately pushing her dreams of owning property, and reaching financial freedom, further and further away.


When Kate met Nathan, she got a reality check, and was forced to reassess her spending habits.


She realized that, by giving into the temptation of instant gratification, she was at risk of being miserable later in life, by not having the wealth to retire comfortably.


When Kate started living within her means, it made all the difference to her progress.


Within 18 months: 

Number of properties with Binvested: 1 property
Binvested property rental income: $290 per week
Binvested property mortgage repayments: $162 per week


If you are not living within your means, how can you expect to reach your financial goals?


If you delay buying luxury goods now and create lasting wealth through investing, you will be able to enjoy those luxury goods a little further down the track – without needing to work for them.


I’d Rather Build Wealth Now

I’d Rather Have A Nice New Car

Have you been able to set aside a pay rise for investing? Please share your experiences in the comments section below.