How Do I Know If I'm Living Beyond My Means?
How Do I Know If I’m Living Beyond My Means?
In 1913 Arthur R. "Pop" Momand created a comic strip that depicted the social climbing of the McGinis family. The comic showed the McGinis’ struggling to maintain a similar lifestyle with their neighbors. The comic strip was called, “Keeping Up With the Joneses.” It’s a phrase and a lifestyle that is still around today.
It’s true that many Americans struggle with keeping up which causes many to live beyond their means. So how do you know if you are living beyond your means?
• You have little or no savings. While saving isn’t much fun it is the sign of someone who is prepared for the future.
• You rely too much on credit cards. A recent study by the Pew Charitable Trusts found that 8 out of 10 Americans hold some form of debt. Seven out of 10 believe debt is "necessary." Of the survey respondents, 85% said they use debt to live beyond their means. • Poor shopping habits. Those who live beyond their means tend to spend money on things they don’t need to impress people they don’t know.• You struggle with contentment. This is a big one for people living beyond their means. When you’re unhappy with what you have spending more feels good in the moment but doesn’t solve the problem.
How do you solve it? First, start and live on a monthly budget. It’s the fastest way to break the cycle. Next, get an emergency fund savings going ASAP and start paying down your debts using the debt snowball approach.
Freedom from money stress is within reach and you can have it today!
