10 warning signs you are living above your means

Living within your means actually makes good financial sense so as to be debt free. You should be working to improve your personal finances. You need to cut out unnecessary expenses, and seek for some ways to increase your income.

But when you are living beyond your means or living from pay check to pay check, then you need to watch it.

Below are 10 warning signs that you are living beyond your means and you need to consciously start making some financial changes in your life right now.

1. You are saving less than 10% of your income for retirement. If you have not been saving at least 10% of your salary for retirement each month, you are living on edge.
2. You don’t have a budget. If you don’t have monthly budget, you have a high chance of overspending and living beyond your means.
3. You can’t pay bills on time. If you don’t have enough money to pay bills on time, you are overextended. Examining your spending habits and adjusting them can solve this problem.
4. You lack financial will power. When you live beyond your means, you spend all your money and don’t save enough to cover for emergencies.
5. You are always borrowing money from friends. If your friends and family dodge your calls and texts because you borrow so much from them, you are overspending. If your current income can’t support your lifestyle and you are always borrowing money, you are living beyond your means.
6. You don’t have investments. If you allow opportunities to own properties pass you by because of lack of funds, you are living beyond your means.
7. When you always use your credit card to pay off your basic bills and transfer balances from one card to another, you are living beyond your means.
8. You try to keep up with your friends. If you are always striving to shop and go on vacation like your friends without considering their income, you will overspend trying to keep up with their lifestyle.
9. You buy everything you want, even if you can’t afford it. Do you live from pay check to pay check because you keep buying things without budgeting for them? You are living beyond your means.
10. You spend more than 25% of your income on eating out each month. If you spend more than 25% of your pay check on eating out monthly, you are definitely living beyond your means. You might have a busy schedule, but that doesn’t mean that you can’t cook at home. There are lots of healthy snacks and meals which are quick and easy to make at home. Meal planning can save you a lot of money.