It is an intuitive perception to cut your coat according to your cloth and not be disposed to living above your means.
Don’t spend more than you earn, elsewise, you will easily get broke, and unfortunately, even the givers are feeling the pang of economic hardship.
Many people are living above their means.
Some of the reasons for this borders on lack of financial planning as it is important we all get educated on how to save for the rainy day or for retirement. Others run out of their hard earned cash due to profligacies and frivolities. Reckless spending that doesn’t add value to their life
Here under are signs that you are living above your means.
No Emergency Fund:
You don’t have a dedicated savings account for unexpected expenses, leaving you vulnerable to financial emergencies.
Carrying Credit Card Balances:
You consistently carry a balance on your credit cards, paying no more than the minimum amount due.
Living Paycheck-to-Paycheck:
You spend all your income each month, making it impossible to save.
Not Saving Enough (or at all):
You are unable to save even a small percentage (like 5%) of your monthly income.
High Housing Costs:
Your housing expenses (rent or mortgage) take up more than 30% of your monthly income.
Growing Debt:
Your personal debt is increasing each year, indicating that you are spending more than you earn.
Overspending on Credit:
You frequently use credit cards or take out loans to cover day-to-day expenses.
Incurring Fees:
You incur bank fees, such as overdraft fees, because you consistently overcommit your creditors.
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