Living within your means actually makes good financial sense to be debt free.Check out these warning signs you are living beyond your means and start making some financial changes in your life right now.
1. You can’t pay bills on time
If you forget to pay your bills, it’s one thing. But, if you don’t have enough money to pay bills on time, you are overextended. Examining your spending habits and adjusting them can solve this problem. Perhaps, you can’t afford regular massages or weekly salon visits. So think it over.
2. Lack of a financial cushion
If you don’t have any savings account, it is one of the warning signs that you are living beyond your means. Money in the bank will support you after a job loss, a sickness and another emergency. When you live beyond your means, you spend all your money and you don’t think about saving them. Try to break this habit and you will free up money for a financial cushion. Eat out less, shop less and vacation less.
3. You’re constantly borrowing money
Do your family members or friends dodge your text messages and phone calls? Probably it’s because they know that you’ll ask for money. If your current income can’t support your lifestyle and you are always borrowing money, you are living beyond your means.
4. Bad credit
Don’t think that the late payments are the only cause of poor credit. Too much consumer debt also affects your credit score. Even if you pay the bills on time monthly, your credit score never increases. So think of paying off your debt. Don’t rely on your credit cards since it can cause high credit card debt.
5. You use your credit card to pay bills
Using your credit card to pay off your basic bills such as utilities or other credit cards’ bills is a red flag. And transferring balances from one card to another is also a warning sign of living beyond your means because you are not paying anything down. 8. You only pay the minimum payment If you only pay the minimum payment every month, its’ one of the biggest sign you are living beyond your means. Paying the minimum won’t help you pay off your debt and you will be paying more in interest, and this can only add to the problem.
6. 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...continue reading -www.facebook.com/noticeboardnigeria -

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