Living beyond your means is something that's quite common these days.
While it may seem okay to some, it unfortunately tends to put most people in tricky financial situations.
That said, here are signs you should look out for to ensure you're not living beyond your means.
1. You live from paycheck to paycheck
Living from paycheck to paycheck can be circumstantial. It might be because you're underpaid or a certain financial obligation is putting you in such a situation.
However, other times, it might be because you're upgrading your lifestyle or just overspending that leaves you yearning for end month because you're broke already.
If this sounds like you, you might be living beyond your means, and so it's advisable to take a step back, have a look at your expenditure and cut back on some unnecessary spending.
2. You don't have an emergency fund
Having no money put aside for emergency purposes means living on the edge.
That's why, setting aside an emergency fund is super important, as it can lift a financial burden off your shoulder once an emergency arises.
An emergency fund will come in handy and cushion you when an inevitable and unexpected expense crops up.
Since you can never plan for an emergency, it is better to be prepared by setting aside one.
3. You don't have a budget
Having and working with a budget is one of those vital steps towards financial freedom and living within your means.
Not keeping track of your money and not knowing where it goes, means you're not taking charge of the situation.
Without a budget and a game plan, you might find yourself spending more that expected even without realizing it.