What does it feel to have a lifestyle beyond what you can actually afford? Does being exorbitant has a negative effect on you?
Being extravagant means living beyond what you have imagined. You tend to buy anything you have seen on advertisements without thinking of your savings.
If you have this habit of continuous spending, it would affect your budget as well as your well-being. Here are the warning signs that you should be on the lookout for.
You Let Fear Dictate Your Spending
Are you familiar with FOMO (Fear Of Missing Out)? It’s like you want to buy limited stuff but you have financial constraints and may end up having a fear of losing an opportunity to avail on that product. With that, you are forced to buy that one just to conquer your FOMO. Don’t force yourself to buy limited stuff, and start saving your money instead.
You Carry a Balance on Your Credit Card
You let yourself buy anything you want using your credit card without realizing that you already have a bigger balance on your account. If you can’t pay your balance, it will freeze your account and you’ll not be able to purchase. If that happens, then FOMO comes in. Don’t use your credit card if you want to purchase something, use your remaining cash instead.
You’re Not Saving at Least 5%
This happens if your savings became your expenses. In the end, you will be financially broke by not saving your money for future needs. You need to discipline yourself that you need to save your money little by little until it grows.
You Have No Emergency Fund
Once your budget is intended only for your wants without considering on your emergency fund, you can’t pay for your hospital bills if your health’s in danger. Reserve some cash in case of emergency.
You Don’t Have Any Money Left at the End of the Month
Financially broke? That’s because you keep on buying and buying without realizing on your remaining balance. You need to allow yourself to spend money only on your necessities for a month — includes bills, groceries, rice.
You’ve Never Set a Budget
You keep on spending your wants without having a budget plan, you’re only wasting your money on something that is not necessary. According to an article, creating this spending plan allows you to determine in advance whether you will have enough money to do the things you need to do or would like to do.
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