We are living in a time when we are influenced to spend. We have developed a YOLO (You Only Live Once) mentality; something that is influencing us to spend everything we earn, living beyond our means and putting ourselves in serious financial problems. Here are some of the red flags that you are living beyond means:

Are you being overwhelmed by the fear of missing out (FOMO)?

Fomo is an acronym that has gained prominences, the fear of missing out on things that your friends are doing. If this fear is dictating how you spend then you’re at risk of living beyond your means. It can be that innocent “let’s eat out” statement from your colleagues. Knowing the kind of fun that they will have can make you feel pressured to join them even when you know that you have bills to settle. You’ll end up spending more than you had planned.

While you don’t need to give up every social activity, you’ll need to weigh some of your spending. Find cheaper ways to have fun. Attending social events which will lead you to spend heavily may only lead to disappointment when you realise that it has left some dents in your pocket.

Are you carrying over a balance in your credit card?

If you find yourself carrying credit over from month to month then you’re spending more than you’re earning. This is a red flag which needs to be addressed quickly before it gets out of hand. This can be done by tracking your credit card use, and prioritising previous balances. Never use your credit card until you have ensured that the balances have been cleared. The temptations that come with cards need to be avoided, otherwise the problem will persist.

You’re not saving regularly

You should be saving at least ten percent of your earnings every month. If you find that you’re spending all your earnings with nothing to save, it means you are living beyond your means. You should set aside some money for future use, this can be done through setting goals and ensuring that you save before spending.