A broke man. [Photo/pontash]
It is obvious nowadays to live way beyond your means because we live in a time where buying on credit has become the custom. However, this can push you deep into a hole that you may find really difficult to get yourself out of. Here are a few signs to be aware of to avoid doing a real harm to your future.
Saving less than 5percent of your salary.
It is a generally accepted tip to save between five and 20 percent of your monthly income. If you are saving some money every month but is far from the desirable 10 percent, then this might be an early sign that you are falling into a dangerous path.
Rent costs more than 30pc of your salary
It comes as no surprise that the largest monthly expense of many Kenyans is housing. It is quite understandable that you would want to live in a home that is spacious and conveniently located.
However, are you aware of how deep this might impact your finances? Is it at all worth it to spend way more than you can afford on housing if it places your finances and quite frankly your whole future at risk? You are far better off finding a less luxurious home that you can afford.
You don’t meet your necessities
If you are skipping the basic necessities such as groceries, toiletries, and clothing, then this might be a sign that you are spending way beyond your means. You could perhaps be spending too much on the larger payments like mortgages, and car payments but is it at all worth it if you can’t even afford the very basics? You are allowed to treat yourself every once in a while. It is healthy to give yourself a little treat but do so reasonably so you can enjoy a little extra spoiling without any extravagance.