The world we live in is constantly influencing us to spend more money. People have this mentality of only living once, and use it as an excuse to spend frivolously. It causes many people to live beyond their means. Are you one of these people? Do you have bad credit, or do you take out loans to pay your bills? If you’re not sure, here are three signs that you could be living beyond your means.

Do You Suffer From Missing Out?

FOMO stands for “fear of missing out” and could be contributing to your financial situation. It could present itself in your friends going to expensive restaurants or owning costly items and you are afraid of missing out on the same experience. Some people struggle to say no because they don’t want to miss out on the experiences or the camaraderie. However, it can become a problem if your finances can’t support this lifestyle. You don’t have to miss every social activity; however, you should be able to say no when you can’t afford it. You can find more affordable ways to socialise, and you’ll find yourself spending less.

Do You Carry Credit Over Every Month?

Having a credit card can be a risky thing if you spend recklessly. If you have credit that carries over to the next month, then you’re living beyond your means. It’s a cycle – you pay off the debt and have less to live on. Your money runs out, you use your credit card to pay for necessities or luxuries, and so it continues. Track your spending, and see what you can go without.

Are Your Savings Non-Existent?

The general rule is that you should save at least ten percent of your income every month. Whether you want to buy a car or travel, saving is essential. If you don’t have money left over to save, then you’re living beyond your means.

A solution is to set up an automated payment with your bank. As soon as your income enters your account, part of it will automatically be transferred to a savings account. However, this won’t change your spending habits, so you should avoid overspending.

If you’re living beyond your means, you might find yourself in a position with bad credit from being unable to pay debts. You might even have to take personal loans to pay your bills when your money has run out. In that instance, you’ll regret every frivolous or unnecessary purchase. Fortunately, you can apply for bad credit loans from Cash Relief. If you ever need emergency cash, you can apply online and receive same-day approval. Call today for more information..