Hey, I’m not here to judge. We’ve all been there before. You’re out at the mall, you see a cute new outfit, and before you know it, you’re standing at the register, swiping your card like there’s no tomorrow. Or maybe you just got a big bonus at work, and you’re feeling like a superstar, so you go out and buy that fancy new car you’ve been eyeing. Whatever the situation may be, living beyond your means is something that can happen to anyone. 

Then again, living beyond your means is one of the biggest causes of stress and anxiety in people’s lives. It can lead to depression, health problems, and even suicide. 

Are you in debt? Do you feel like you can never quite get ahead no matter how hard you try? If so, there’s a good chance that you’re living beyond your means. If you’re constantly struggling to make ends meet, it might be time to take a closer look at your spending habits.

Of course, it’s a daunting task to keep track of your spending, especially when you don’t have a lot of money, to begin with. But, don’t worry – there’s hope. You can take steps to get your finances back on track and start enjoying life again. 

In this article, I’ll discuss five tell-tale signs that you’re living beyond your means and what you can do about it.

1 You have more debt than savings

This one’s pretty obvious. If you find yourself constantly borrowing money or using credit cards to make ends meet, it’s safe to say you’re living beyond your means. Get your finances in order and start building up that nest egg!

If you have more debt than savings, it’s clear that you’re living beyond your means. Ideally, you should have at least three to six months’ worth of living expenses saved to cover your costs if you lose your job or experience a financial emergency.

2 You’re constantly borrowing money

Borrowing money shows that you can’t afford to pay for something with your own money.

Do you have a spending problem? Do you find yourself constantly borrowing money from friends, family, or even strangers? If so, it’s vital to get your finances in order before things get out of hand.

So before you borrow any more money, ensure you’re taking the necessary steps to get your finances under control. Otherwise, you might find yourself in some serious debt.

3 You use credit cards for everyday purchases

For a lot of people, using credit cards is a necessary evil. You can use them to build up your credit score, and they can be helpful in an emergency. But if you’re using credit cards for everyday purchases, it’s a sign that you’re living beyond your means.

I don’t mean to sound like a harsh parent, but credit cards should only be used for emergencies or big-ticket items you can’t afford to pay for with cash.

4 You don’t have a budget

A budget is a great way to manage your spending and ensure you’re not overdoing it. It’s a crucial tool that can help you keep track of your income and expenses so that you can make informed financial decisions.

But if you find yourself constantly blowing your budget or not even bothering to make one in the first place, you’re likely living beyond your means.

5 You can’t afford to save for retirement

If you can’t afford to save for retirement, it’s a sign that you’re living beyond your means. Retirement may seem like a long way off, but it’s important to start saving for it as early as possible.

Grams always said, “When I was younger, retirement seemed like a lifetime away.” As I’ve gotten older, I’ve also realised that retirement is not as far off as it seems. It’s essential to start saving for retirement as early as possible. 

The sooner you start putting money away, the more time it has to grow. And while retirement may seem like a long way off, trust me, it will be here before you know it. So start saving now and enjoy your golden years worry-free.”

What I’ve been saying all along

If you’re living beyond your means, don’t despair – there are plenty of things you can do to get your finances back on track. Start by creating a budget and sticking to it. Then, work on paying down your debt so that you can start building up your savings. With some effort, you can get your finances back on track and start living within your means.

Do you have any other tips for living within your means? Share them in the comments below!

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