Signs your lifestyle is unsuitable for your budget
What's the story
Leading a particularly lavish lifestyle is often something that becomes ingrained and may go unnoticed for a long time. It is in fact easy to get caught up in the pursuit of keeping up appearances.
However, the reality of financial health often lurks behind closed doors.
Here are some subtle signs that indicate you might be living beyond your means.
Emergency expenses
You cannot afford an emergency expense
Living to pay bills makes it challenging to save on emergency savings. With age, things only grow worse.
Unfortunately, until there is an emergency, a lot of people are unaware that they have a problem.
One excellent strategy to stop that pattern is to be ready for everything that may come up. Always have some extra money set aside in case you need it.
Monthly savings
You struggle to make your ends meet
Paycheck-to-paycheck individuals often think that they are unable to save money or cut back on spending as their way of life has become second nature to them.
However, there are methods to increase your savings and increase the awareness of your purchasing choices.
For 30 days, allow yourself to spend money just on the essentials (rent, bills, groceries), and eliminate all other expenses.
Credit card balances
Your credit card balances are rising
You are probably over your budget if you only make the minimum payment required on your credit card bills each month or if you make a meager contribution toward the main amount.
If you can't pay it off in full, contribute at least a significant amount toward the outstanding principal.
It is best to avoid using credit cards until the balances are under control.
Budget
You don't know where your money goes
You may be content with your current salary, but you also occasionally enjoy blowing it on luxuries and treats.
Carelessly spending money on small, seemingly less expensive items soon mounts up to a higher monthly cost.
This comes as a result of not budgeting your expenses and it can be an indication that you are not saving enough money.
Debts
You can't keep up with multiple debts
It's much simpler to make a purchase and pay it in monthly installments.
However, you are probably living above your means if your monthly income is being cut up to pay for a lot of such installment purchases/services.
If the weight of your debt feels overwhelming, it's essential to reassess your lifestyle choices and create a plan to manage and reduce your financial obligations.