Finance & Loans

Living beyond your means

How can you tell that you are living beyond your means? If you are buried in debt and you are having trouble making your monthly payments, this is an indication that you are exceeding your financial capabilities. Most common mistake we make is charging things that we can’t afford to available credit cards. When it comes to paying bills including shelter, utilities and others, we struggle to make even the required monthly minimum payment. This becomes an issue when it comes to getting ahead and paying off your high interest credit cards. Paying just the minimum required amount will not be enough to get out of debt.

Another sign that tells you are living beyond your means is when you don’t have adequate savings for an emergency and you are living from paycheck to paycheck. Experts recommends at least six months of living expenses to be saved in a savings account to be used if you get laid off or to face some other calamity like unexpected medical bills. If you don’t have any savings to cover emergencies, then you are living beyond your means.

It is time for you to take a closer look at your expenses and stick to a budget. Don’t hesitate to seek help from a financial professional.