Are you secretly afraid of running out of money and ending up broke one day? If the answer is yes, you may be living beyond your means. When you are in a financially difficult situation, it is very difficult to confront yourself and come to the conclusion that you to work on your finances a bit. To know if you are living beyond your means or not, make sure you go through the below mentioned points.

paying overdraft

Here are the 6 warning signs you’re living beyond your means

1.  You are paying overdraft fees every month

Overdraft is a fee charged by the bank when you withdraw more money from your account that the available balance. If you are paying an overdraft fee, you are not only living beyond your means but also are oblivious of its repercussions. It’s apparent that you are spending money than you are supposed to.

2. Spending money makes you feel good

This is probably one of the biggest signs that you are living beyond your means. Financially independent people have no inclination towards spending money just for the sake of it. They don’t get an emotional spike every time they buy a new pair of footwear. In fact, in most cases it the other way around. That fact that you feel good after spending money should tell you that you are filling up an emotional void by buying pretty things that you may not need. You need to educate yourself on personal finance by reading blogs like this one.

3. You do not have an emergency fund

Having an emergency fund is essential to living a well-rounded and financially secured life. You are definitely living beyond your means if you don’t have a go-to solution in case of a personal financial dilemma.

4. You are spending all your income

It is imperative to save a major chunk of your income in a savings account. Even if you are currently earning a minimum wage, your savings will help you in the future. Don’t be one of those people who get so bogged down by their debt that they forget to save or find it irrelevant.

5. You are not paying your credit card bills on time

Not paying your credit card bills on time will put you in some serious trouble. You know you are living beyond your means when you are letting your credit history suffer. It is a different thing to overspend using your credit card but the fact you are delaying bill payment should start ringing bells in your mind. It’s time to get your life in order.

6. You don’t keep a budget

Budgeting is planning how and where you are going to be spending your money in the following year. It is to be done before the financial years begins. You should also understand that it’s an estimation of how much you will be needing to spend. But don’t be too flexible with your yearly budget.

Conclusion

So, be aware the next time you get an impulse to buy something new. Just wait until you feel relaxed and even-keeled. I am sure most of the purchases you usually make can be prevented by delaying it by a day or two.