The nation’s economic downturn forced many people to reassess their lifestyles. Homes that once seemed like natural components of the American dream soon became weighted shackles of unrelenting debt. Then things like that modest boat that made you feel like you were living the good life soon started looking like a gas guzzling money pit. The smart ones have found clever ways to ride out the economic storm, but it hasn’t been without sacrifice, even if it’s just skipping the big annual vacation or the not-so-simple decision to choose a less expensive college for your child. But sadly, there are plenty of people out there still living beyond their means.
Have a look at these scenarios to see if you’re one of them…
If you consistently buy things with money you don’t have then you are quite obviously living beyond your means. To avoid some serious financial repercussions, credit should be used sparingly not like it’s Christmas every week. If you use shopping as therapy or a form of self-medication then do your best to get to the route of why you can’t effectively simplify your life. Credit debt that doesn’t get consistently paid down is just bad business for your own personal finances, so get it under control as quickly as possible. The upside is that once you do start living without your means you’ll most likely appreciate your simple life in a way that you never did the lavish one.
Like with credit debt, if you keep taking out loans for stuff you can’t afford you’ll just keep sinking, and at a rapid rate. Granted, some expenditures are necessary and may in fact better you life, like furthering your education, starting up a business, and the like, but be sure you have a game plan and the means to repay that loan as quickly as possible. And don’t take advances on your paycheck unless you are in some seriously dire need because the fees for such things are incredibly costly. Instead, learn how to make do with what you’ve got or work up a new plan.
Robbing Peter to Pay Paul
Even if you’re not living a lavish lifestyle if you find that you are constantly robbing Peter to pay Paul then something has to change if you can ever have any hope of getting ahead in life. That might mean downsizing considerably, getting a new or second job, and making any other changes-big and small-to help better your financial situation.
Times are tough, there’s no doubt about it but if the old lifestyle can no longer be maintained, then things quite simply need to change.