LIVING BEYOND YOUR MEANS

 

Let us face it, it can be really hard to live within your means these days; with credit cards, internet shopping, and a variety of products you can choose to buy, some people find it almost impossible to keep their finances in check. This can quickly get out of hand if you are unable to manage your finances correctly. 

Here are some signs that you should take a closer look at your bank accounts and learn to keep your wallet in your pocket.

You often find yourself being pressured into spending because of your circle of friends.

People want to belong to certain groups. Sometimes you have to go out and attend social gatherings to maintain your relationships with these groups. These people will surely invite you to join them when they go out to have fun. Whether it is your friends, family, or significant other, you will have to spend some money when you socialize with them. While it is fine to have fun with other people once in a while, remember to always take into account your finances before you decide to hit the club or the fancy new restaurant down the street. Know how much money you have and if you can afford to spend it before you tell your friends that you will join them for a few drinks or dinner. 

You notice that you always carry a balance on your credit card.

Most adults already have a credit card they can use to pay for things instead of bringing out cash. Credit cards are not necessarily bad because they are easier to carry than cash. Financial problems do not happen because a person has a credit card, they happen because the person with the card does not know how to use it properly and responsibly. Constantly purchasing things with your credit card is one sure fire way to get yourself into a lot of debt. If you find that you have a huge credit card balance at the end of every month, a balance that you cannot afford to pay, then maybe it is time to cut up that card and switch to cash. Start spending less so that you can slowly pay off the balance. And also start bringing cash instead of the plastic card that got you into this mess in the first place. Make an effort to slowly start paying off your credit card debt.

You are not saving money.

Saving money is one of the most important financial concepts that any responsible person should know. It is important to have some savings for tougher times. Medical emergencies and sudden financial problems can deal a huge blow to your bank statement. Savings will help you adjust to hard times while maintaining a reasonable lifestyle. Six to nine months of savings for expenses such as electricity and food are basic to maintain financial stability. If you find that you cannot save at least five percent of your income at the end of each month, you might be living well beyond your means.

You are leasing a car that is too expensive for you.

Cars are a very big investment for any adult. They can help you get to work on time and gives you a vehicle you can use to travel with your family. While it is a good idea to get a car lease, remember that some car leases are just downright ridiculous and unreasonable. Some people will lease the newest Jaguar when what they really need and can afford is a Proton. Do not lease a car you cannot afford. You do not need a luxury car to get to work every day. Many cities have great public transportation systems that are a good alternative to owning your own vehicle. This is also good because you can help cut carbon emissions and save the environment.

You are always borrowing money.

Sometimes you really have to borrow money. Emergencies can happen that would require you to get some quick cash from a relative or close friend. Understandably, asking for a loan is unavoidable in certain kinds of situations. But asking for loans for things you do not need can create big problems for you. It can also be annoying to other people; they might even try to dodge your texts and calls to avoid giving you money. It is never good to be in a ridiculous amount of debt for trivial things that you do not need. Be honest with yourself and live within your means. Be responsible when you ask for loans from other people because you might even damage the relationship if you repeatedly ask for loans or do not repay the debt.

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