How do you know if you’re living beyond your means?
Here’s some things to consider.
Do you run out of money before your next paycheck? Might be time to look at your spending each month.
If you use your credit card to pay for vacation because you don’t have the cash. I am not saying you can never go on vacation, but waiting until you can afford it, makes sense.
You have no emergency fund. Emergency fund is 3 to 6 months of your spending needs in case you can’t work, or you have a big unexpected expense.
You can’t pay off your credit card balance each month and you’re paying interest on that money. Try to only use a credit card if you can pay it off each month.
If you can’t save at least 5% of your income each month. Saving what you can each month is crucial to your overall financial health.
We all hit rough patches in life but realizing your living beyond your means, and making changes to your spending can get you back on course.
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