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5 signs you are living above your means

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When you have a job, the temptation to buy everything you want can be great for some people. But this mentality will leave you a slave to your job, and it could be a job you do not like. If you have money to buy what you want, does that necessarily mean you can afford the purchase? The following are some signs that indicate you are buying more than you can afford:{{more}}

1. Putting items on credits cards and only making the minimum payments.

2. Borrowing money from friends.

3. Neglecting important responsibilities (health care, paying utility bills, etc.) to get what you want.

4. Buying what you want, when you want, and you have no savings account.

5. Having a savings account but rarely funding it, or you are constantly withdrawing from your savings.

Can you afford it?

Imagine there is a nice outfit that you want (not need). If, after you have taken care of all your expenses and obligations, there is money left over (disposable income) then you can afford to buy the nice outfit.

Friendly reminder: Think twice before you spend your money and live within your means and, in case you were wondering, here is how need and want is defined:


There is a big difference between a need and a want. Unfortunately, many people have difficulty distinguishing between needs and wants.

  • Need. A need is something you cannot live without. It’s an absolute necessity, a requirement for living. Food, sleep, water, clothing, heat and medical attention are some of the basic needs of life.
  • Want. A want is something you desire. It would be nice if you had it. These things might make life more comfortable, more fun, make you look fabulous, but they are not necessities. Designer clothing, specialty foods and cable television are all examples of wants. What has happened is many people classify their wants as needs. Some young people do not want to live without these luxuries, or perhaps other people paid for these previously and they are used to having them without having to pay for them.

Examine the things you currently have in your life that you classify as needs and wants and list them.

Karen Hinds is “The Workplace Success Expert.” For a FREE SPECIAL REPORT on Avoiding Career Killers in the Workplace, send an email to [email protected]

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