Law School
Personal Finance

4 Symptoms of Living Beyond Your Means

Many people don’t realize they’re in financial trouble before it’s too late. Individuals who end up bankruptcy often say the same thing: “How did I get here?” More and more Americans are living beyond their means, especially younger Americans. The problem is that living beyond your means has become a societal norm. Consequently, many people don’t recognize that they’re living beyond their means. So, for your consideration, I present 4 symptoms of living beyond your means. As soon as any of them show up, make the needed adjustments, i.e. spend less, in your financial life immediately.

  1. You use loans to pay debts. If you’re using debt to pay old debt, then you’re definitely living beyond your means.
  2. You only use credit to make purchases. You can’t afford the lifestyle you’re living with cash anymore, so you move to credit cards. To make yourself feel better, you pay with cash that’s drawn from your credit. Cash from credit is the same as just using your credit card- you’ll have to pay it back.
  3. You get overdue notices everyday. The only thing you get in the mail is letters from creditors wanting their money, but you don’t have the money to pay them. It might be time you start reining in on your spending.
  4. You don’t know how much you’re spending. If you never have money and you don’t know where it has gone, you’re probably in trouble.

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[tags]debt, frugality, bankruptcy, credit cards[/tags]