• हिन्दी
  • ગુજરાતી
  • বাংলা
  • తెలుగు
  • मराठी
  • ಕನ್ನಡ
  • money9
  • Insurance
  • Saving
  • Mutual Funds
  • Mirae Asset MF
  • Breaking Briefs
downloadDownload The App
Close
  • Home
  • Videos
  • Podcast
  • Banking
  • Bulletin
  • Gold
  • Healthcare
  • Real Estate
  • Tax
  • Travel
  • Survey 2023
  • Survey Report
  • Breaking Briefs
  • Insurance
  • Savings
  • Loan
  • Crypto
  • Investment
  • Mutual Funds
  • Real Estate
  • Tax
  • Exclusive
  • Home / Investment

Signs you are living beyond your means

You should set aside anything from 10% to 15% or even 20% of your salary as savings

  • Himali Patel
  • Last Updated : October 2, 2021, 12:38 IST
  • Follow
Living beyond your means implies you must make sacrifices and start an emergency fund if you can't save enough money to cover your living expenses for at least six months in the event of a job loss.
  • Follow

A good rule of thumb is to save at least 5% of your gross income and have enough savings to cover at least six months of expenses in case of an emergency. Pay off your credit cards on time each month to avoid accruing interest, which can quickly drain your bank account. If you’re constantly short on funds, it’s time to make some adjustments. Let’s look at below few signs that indicate that you are living over your means:

Not saving at least 5% of income

You should set aside anything from 10% to 15% or even 20% of your salary as savings. Saving less than 5% of your income suggests you’re probably living beyond your means.

Not fully paying credit card bills

Swiping that plastic without thinking about how quickly the balance is growing is a simple matter of habit. The balance will continue to rise even if you only make small purchases. Then, when the bill comes, you’ll be paying interest on the money you’ve already spent because you charged more than you could afford to pay. You’re putting stuff on your credit card that you can’t afford.

No emergency savings

Living beyond your means implies you must make sacrifices and start an emergency fund if you can’t save enough money to cover your living expenses for at least six months in the event of a job loss.

Holiday on credit

After you return from your vacation, you’ll have several months to pay off the balance on your credit card. You’re living over your means if you can’t afford to pay for it all at once.

You run out of money before your next pay cycle

You rely too much on your credit card. You should start adjusting your way of life to match your income or take steps to ensure that your income matches your way of life.

Lack of retirement funds

On the other hand, planning for retirement should be at the top of your priority list if you don’t intend to continue working for the rest of your life. When times are tough, it’s all too easy to let your retirement savings slip through your fingers. Creating a budget is one way to get your life back on track. Budgeting does not imply giving up everything you want, but rather, it means figuring out how to spend your money more wisely while still allowing you to achieve your financial goals.

Published: October 2, 2021, 12:38 IST

Download Money9 App for the latest updates on Personal Finance.

  • Basic salary
  • credit cards
  • expenses

Related

  • पहली छमाही में रियल एस्टेट में संस्थागत निवेश 37% घटकर तीन अरब डॉलर रहने का अनुमान
  • Budget’24: New LTCG rule to hit long-term property owners hard
  • Looking to buy gold? Buy now before it’s too late!
  • Budget 2024: What is NPS ‘Vatsalya’ scheme? How to apply & other benefits?
  • Budget’ 24: Startup ecosystem all smiles with scrapping of angel tax
  • Budget’24: New NPS scheme for minors launched, here’s how you can benefit

Latest

  • 1. Know the correct way to get KYC done!
  • 2. Why health insurance claim gets rejected?
  • 3. Power to Respond!
  • 4. What is Asset Under Management?
  • 5. No Worries on Medical Expenses!
  • Trending Stories

  • आयकर रिफंड में 2013-14 से 474 प्रतिशत की वृद्धि, पिछले 11 वर्षों में जारी करने का समय हुआ बेहतर
  • वेतन वृद्धि टीसीएस की प्राथमिकता; लाभप्रदता के साथ वृद्धि पर ध्यान: सीएफओ
  • डीएलएफ के पास बाजार की आकांक्षी जरूरतों को पूरा करने के लिए मजबूत पाइपलाइन: चेयरमैन
  • बिट्स पिलानी विस्तार, अमरावती में नए परिसर पर 2,200 करोड़ रुपये का निवेश करेगा
  • एयर इंडिया पायलटों के साथ विमान दुर्घटना की प्रारंभिक रिपोर्ट की समीक्षा करेगी
  • TV9 Sites

  • TV9 Hindi
  • TV9Telugu.com
  • TV9 Marathi
  • TV9 Gujarati
  • TV9 Kannada
  • TV9 Bangla
  • News9 Live
  • Trends9
  • Tv9tamilnews
  • Assamtv9
  • Malayalamtv9
  • Money9 Sites

  • Money9 Hindi
  • Money9 English
  • Money9 Marathi
  • Money9 Telugu
  • Money9 Gujarati
  • Money9 Kannada
  • Money9 Bangla
  • Money9live
  • Topics

  • Insurance
  • Savings
  • Loan
  • Stocks
  • Mutual Funds
  • Real Estate
  • Tax
  • Crypto
  • Exclusive
  • Follow us

  • FaceBook
  • Twitter
  • Youtube
  • Instagram
  • Linkedin
  • Download App

  • play_store
  • App_store
  • Contact Us
  • About Us
  • Advertise With Us
  • Privacy & Cookies Notice
  • Complaint Redressal
  • Copyright © 2025 Money9. All rights reserved.
  • share
  • Facebook
  • Twitter
  • Whatsapp
  • LinkedIn
  • Telegram
close