Are You Spending Above Your Means? Here are the Signs

It is a known fact that more Americans are deep in debt than are actually out of it. This is for a reason, and that is because so many Americans think that it is okay to live beyond their means. What does that mean exactly?

Spending above your means implies that you are spending more than you should be, as you are spending more than you can actually afford to pay out every month. This is a common problem with many people, and most that are guilty of such a thing don’t even know that they are doing it. This is quite a big problem and one of the main reasons why so many are in debt. If you think that there is a possibility that you could be living and spending above your means and creating a big pile of debt for yourself in the process, here are a few indicators that your suspicions are true.

You Have Multiple Credit Cards

If you do everything with your credit cards from shopping to gas to business attire to pet supplies and fast food, then that may be a sign that you are living above your means. If you have more than two credit cards that you actually use every week, that could be another sign that you are spending more than you should. If possible, adopt a rule that if you can’t pay for it with cash then you can’t have it. Or, start using your ATM/DEBIT card with a Visa or MasterCard logo a bit more often.

You Buy Everything You Want

If you buy everything you want, you are probably spending above your means. Why? Because few people that aren’t considered wealthy get every single thing that they want. Wanting things keeps us working hard, and what keeps us spending the money to make the money the economy needs. It sounds complicated, but it’s really not. The moral: let yourself want a little. Sure you can get those sneakers on sale if you want to, but why charge it now when you get paid in two days? You don’t have to impulse buy on everything.

You Have No Budget Whatsoever

Not everybody has a formal written down. As a matter of fact, most people don’t, but many do have some semblance of a budget in the furthest recesses of their minds. This is the guilt that screams ‘wait!’ when you spend on something you may need the cash for later. Your greedy side takes over and buys it sure, but at least you knew better. If that doesn’t sound familiar to you, you could be in the category of those who have no budget or semblance of one. If you have nothing important to spend your money on that is fine, but most working adults should at least try to put something together.

If you don’t have a budget for 2008, I encourage you to create one NOW. You’ll be glad later.

If you are too deep in debt form the holidays, I have a quick report for you here, appropriately called Creative Ways to Eliminate Holiday Debt

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