5 signs you're living beyond your means

If you don't know why you spend more than you earn, check these tips, if you are guilty of any of them, you've got to manage your money better.

Some people are living beyond their means and this is because they want to live someone else's lifestyle.

If you want to wear designers like stars and drive the latest cars like they do, you've got to check your income. If it's higher than the lifestyle you crave, you'll surely be living beyond your means.

To make this clearer to you, if you notice these five signs, you are already spending more than you earn.

1. You're living pay to pay

The quickest way to identify a living-beyond-the-means lifestyle is when you always run out of money before payday.

This is exactly how you live:

You work for 25 or 30 days as the case may be. You get paid, settle your bills and you begin to spend non-stop till you run out of money.  When you run out of cash, borrowing becomes the next option.

This is a bad financial habit and it explains the reasons your salary alert is the only sound that gives you a relief.

2. You buy to keep up

Everyone has a different reason for spending their money. But, when you start to spend your money on certain items just because you want to feel like others or wear the latest designer because someone just got it, your earnings won't last.

There is no problem with this if you can AFFORD it. But if your earnings are not enough to earn you this lifestyle, you need not copy others. Just make do with what you have.

3. You're not saving anything

Like every other person, I am sure you like the idea of saving. Everyone wants to save to meet their financial goals. But hey, are you saving?

If your answer is no, then, check your lifestyle and what you spend your money on. If you are not trying to give the impression that you are rich when you actually live from pay to pay, nothing should stop you from saving part of your monthly income.

4. You have zero emergency fund

An emergency can happen anytime. This is why is it wise to set aside a saving for it.

Anyone who has a handsome income should have an emergency saving should the unexpected happens.

However, if you don't have it, you need to check your spending. That money you spend every time on entertainment could be used as emergency funds.

5.  You cannot afford the essentials

If you find it hard to afford the basic essentials, like food and toiletries, then it is a clear case of money mismanagement and inappropriate use of money.

Your essentials should come first before any other thing.

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