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How To Know You’re Living Outside Your Means

The obvious sign is that you’re scrambling the pennies until the next paycheck, but if you need some more signs that you living beyond your means, look no further.






Your Credit Score Is Below 600


Your credit score is a numerical figure produced by TransUnion, Equifax and/or Experian outlining your payment history, outstanding loan balances and legal judgments against you. Whilst a credit score can range from 350 – 900, the higher the better.


A credit score of below 600 probably means that you are relying on credit a bit too much.


You are Saving Less Than 5%


Whilst 5% isn’t the die-hard figure one should put into their savings, it’s a good ballpark figure to aim for when it comes to savings. If you can’t save, you just might be living beyond your means.


You Keep Extending Your Overdraft


The purpose of an overdraft is for short term borrowing, and not something you should be dependent on from month to month. If you find yourself living out of your overdraft, follow our steps to help get it paid off and start living within your means.


More Than 28% Of Income Goes To One Aspect Of Your Finances


Calculate what percentage of your monthly income goes towards all of your outgoings and ensure no more than 28% goes to any one of them. This would mean your mortgage, car, schooling, debt repayment and other outgoings should all fall under 28% of your overall income.


28% is the magic number as research shows this is the amount in which you can remain balanced in terms of your spending, saving and standard of living,


Fempire Finance

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