We usually spend as much as we earn. And with revenue growth, expenses automatically increase. Problems start when expenses exceed income. Some people don’t even realize they are trapped.
How to recognize and overcome potentially harmful habits?
In this article, we will give you 9 signs to realize that you are living beyond your means.
Avoid money management tasks
If you deliberately avoid any of the tasks associated with managing your own money, this is a wake-up call. As a rule, this happens when you don’t like the current situation and it seems like it will only get worse. It is much easier to avoid facing the truth and hope for the best.
It will not work. Choose a specific time of the week or month to dedicate to careful financial planning.
You have problems with credit cards
Using a credit card and making payments on time is a common story.
But when there’s excessive credit card debt that you can’t pay, it’s time to put your head down.
The bank begins to charge additional interest. Over time, paying off the debt will cost you more and more – the interest will add to the amount.
When credit card payments become a heavy chore on your budget, it’s a sure sign that it’s time to cut back. Start saving small amounts as soon as possible to pay off your loan.
Has it ever occurred to you that living with a credit card is a sign of financial trouble?
The more you get, the more you spend
More money more problems. Those who suddenly start earning more are at risk; Along with income, expenses also increase, and sometimes disproportionately. It’s also a sure sign that it’s time to review your budget to provide some headroom to save.
You live from check to check
In this case, your expenses are so high that you have to wait for your salary to pay the bills. The obvious solution is to reduce your expenses as much as possible. Think about what you can change in your lifestyle. This can be a change of home for a more modest one, buying a less expensive car, etc.
People with incomes like yours spend less
Many extenuating circumstances make life seem different for two people with the same income. For example, the first may be single and the second is the father of two children.
However, in most cases, you will notice similarities between your life and the lives of people with similar income levels.
If with the same salary level, a person often goes on a great vacation and spends clearly more than everyone else, it is time to moderate her appetites.
You make impulse purchases
Each of us loves to buy new things. The joy of shopping is incomparable with anything, the only downside is that the joy does not last long. But who will remember this at the time of purchase! But if you uncontrollably want to experience it again and again, shopping has likely become a bad habit for you, negatively impacting your finances and possibly other areas of your life.
This can usually be resolved with self-discipline, but if you feel this is out of your control, seek professional help.
You are bored at home
Are you uncomfortable at home? Do you make unnecessary purchases online or at the mall just to keep busy? Have fun?
Whatever happens, try planning, activities, and adventures with friends in your spare time and have a busy weekend. Spending money is not the only pleasure in life.
You don’t look for opportunities to save money
Sometimes excessively wasteful lifestyles are simply a matter of an inability to be frugal or sheer laziness. Many people spend much more money than they could, simply because they pay full price for everything when there is a real opportunity to avoid it: coupons and discounts can save tens of thousands of rubles a year.
You don’t feel the need to save at all
Likely, you are simply ignoring the idea of saving money. You may think that this is a sign of poverty or something impossible. You are wrong.
Only money NOT spent makes us rich!
After saving even a very modest amount of money, you are ready to put something in your savings account. And that’s a good start if you’ve realized that you’re living beyond your means.
Even with the sum of little money, it will be a good start. A country is not built immediately and the same is true of its financial future.