May 14, 2022, 19:04 | Business
It would seem that you work a lot, receive a more or less decent salary, try not to spend a lot, follow the budget, but there is still not enough money.< /p>
Here are the signs that you are living beyond your means, informs Ukr.Media.
You take loans rashly
No one is urging you to completely give up loans, but before taking them, think about whether they will be useful. It's one thing to buy a car on credit for the family or spend the bank's money on education or a business that will improve your financial situation. And there is nothing wrong with indulging yourself with a new gadget in installments, if you do not abuse credit and know for sure that the monthly payment will not blow a hole in the budget.
How to understand that are you living beyond your means? But if you borrowed the latest iPhone model and now have to eat instant noodles, then it's useless – no matter how much you have to take out a loan to treat a damaged stomach in the future.
You are in the "39% rule"
39% – this is exactly the number of people in the world who do not have savings equal to at least their average monthly income. Without at least a small "air bag" an unplanned trip to the dentist or a broken washing machine turns into a financial disaster and a debt pit.
You neglect important payments
You postpone the payment of utilities, dental treatment, buy unhealthy but cheap food. Instead, you impulsively buy electronics, clothes, accessories, fancy appliances — things that are certainly nice, but not a priority. Meanwhile, utility bills grow, teeth decay, and the body suffers from vitamin deficiency.
You have old small debts
You forget to pay the smallest debts. After all, how often it happens: there he borrowed 50 hryvnias, here – 100. “It's okay, they'll wait, they won't get poor from such a trifle,'' many think. But the problem here lies much deeper, and it is rather psychological.
Small debts tend to accumulate, you start to be irresponsible with money, believing that you can always borrow from someone. But the number of those who are ready to help you is not infinite. In addition, by borrowing again and again, you will get deeper into debt, because you will no longer remember from whom and what amount you borrowed. Get into the habit of at least giving back what you took from each paycheck. And do not think that this is a small thing. Very soon it can turn into a huge debt.
Do you use a credit card for everyday expenses
Do you use your credit card to pay for everyday expenses such as groceries, communication or utilities? It's a bad sign that your expenses have exceeded your income, as well as the fact that all of your paychecks are going toward the minimum credit card payments.
You're not keeping records
Economists say that not spending means losing about 30% of total income. We do not remember many small expenses and, accordingly, do not take them into account when estimating how much we spent. Try to write down all your expenses, down to a pack of gum and a cup of coffee, for at least a month, and you'll be surprised how many “loopholes” money has. If an incomprehensible fear prevents you from doing this, then you are definitely living beyond your means, but you are subconsciously afraid to admit it to yourself.
You make a lot of impulse purchases
Everyone is familiar with the persistent desire to buy this thing – or just anything – here and now. At this moment, the person does not understand well what the consequences of the purchase may be. Frequent impulsive purchases indicate low self-esteem and self-doubt, and you need to fight this passion in a psychologist's office. But recognizing the presence of a problem is already half the battle.
Shopaholicism and impulsive purchases – don't hesitate to tell yourself “I can't afford it”. Economy is a sign of not being “poor” or a loser, but a prudent person who invests in the future and does not live in the moment.