Most of us seem to forget one of the most obvious things in our life even though it is that simple; money is only a tool to help us to do what we want, to live out your dreams or goals as far as money can by them. Have you ever considered to live on little money? You can even live well with little money but the biggest benefit of living on a small budget now, is that you will be able to live a life of leisure where you can spend your time and energy doing things that you choose to do within some years. To gain financial independence whether your purpose is retirement planning or another purpose, there is more than one way to go. Roughly there are two ways to obtain it:

• Reducing your expenses

• Increasing your income.

Reducing your spendings

This is obvious - but so many people have not understood it yet: Always spend less money than you make. Continually track and review your purchases for the purposes of keeping track of your money as well as learning from your previous mistakes. We are actually talking about a change in your lifestyle, and you can't expect to do this change overnight.

Never use money on impulses but always plan and prioritize your purchases. You must understand that money is not the important thing, the important thing is to have a good life. Therefore sit down and find out what is really important for you in your life and prioritize your use of money according to that. Focus on achieving your goal and never lose sight of it. Be creative and constantly look for ways to live well without much money. Who said you couldn't live a good life frugally?

When you plan to use money on items for your household like a dish washer, vacuum cleaner, refrigerator etc. only buy what you absolutely need and see that it lasts as long as possible. You must ask yourself: Will this item benefit me? You must continually go through a process of selecting strategic use of money as well as do all you can to save money on all your purchases.

If you owe money, make a debt elimination plan and stick to it This is especially important for consumer debt; get rid of it and the sooner the better. Why not move to the countryside. The point is that you should find a place to live that limits your expenses where you at the same time can live a good and healthy life.

Increase your income

If you don't already have it, you should find a job that pays well and doesn't add a lot of cost to your life. You should continually look at improving your income by

• getting a higher paying job

• earning more side income.

The cost you save by changing your lifestyle - your surplus - should be invested. Keep investing the surplus and accumulate it. If you can come so far that you are able to invest $1,000 to $2,000 a month for 12 to 15 years or even better if you can increase your savings by a few percent each year, you will be able to withdraw a decent income from the interest on your investment.

It is possible to re-engineer your life to live well even on little money. If a financial emergency should occur, it is necessary to have some money available. Therefore your should establish and maintain an emergency fund. The more income you make, the more money you can save with a frugal lifestyle. If your goal is to retire, remember that the more income you can get and the lower expenses you have, the quicker you can retire. If you get used to living on a moderate amount of money and prioritize what you really want to do, as far as what money can buy, you will be the master of your time and money - in other words you will be in control of your life.