15 Warning Signs You Are Living Beyond Your Means (3).

11. You try to keep up with your friends

Does your best friend shop and vacation often? Do you try to keep up with her lifestyle? If so, you are probably living beyond your means. There is nothing wrong with a little fun, of course, if you can afford this fun.

12. You buy everything you want, even if you can’t afford it

Many people are guilty of this, including me. Although I write a good budget, sometimes when I get my paycheck, I spend all money on the thing I really want. Then, I end up living paycheck to paycheck, thinking where to get money to buy the essential things, including food. That’s hard to do. If you really want to buy something, try to budget for it. Don’t just buy it. You should always remind yourself that if you can’t pay for it with cash, you shouldn’t purchase it.

13. You spend more than 25% of your income on eating out each month

Do you know how much money you spend on eating out each month? If you spend more than 25% of your paycheck on eating out monthly, you are definitely living beyond your means. You might have a super busy schedule, but it 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.

14. You are saving less than 10% of your income for retirement

If you have not been saving at least 10% of your paycheck for retirement each month since age 25, that’s a red flag. Saving for retirement is among the most important things everyone has to do. Even if you are in your 20s, you need to start saving. The earlier you start saving for retirement the less you’ll need to put aside monthly to achieve your retirement savings goals.

15. You don’t have a budget

Finally, if you don’t have a written budget, you have a high chance of overspending your money and living beyond your means. A written budget shows if you’re spending more or less than you can afford. Start a budget now and you will see how much money you are actually spending and how much money you can save each month. This will help you live within your means without debts. If you have credit cards, make sure you keep track of the money spent with them too.

I know, living within your means is restrictive, but you can enjoy financial happiness and peace of mind. Are you living beyond your means? What are you going to do to change the situation? 

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