10 Part Series on “Leading A Debt Free Life & Marriage” Part 3 (6 Ways To Know If You Are Living Beyond Your Income)

Marriage Alive Digest 10 Part Series on

“Leading A Debt Free Life & Marriage” Part 3

6 Ways To Know If You Are 

Living Beyond Your Income

In many homes, living beyond income levels has become the standard. Using readily available credit to finance our lifestyles is routine. The everyday social pressure to meet certain living standards keeps pushing families to financial instability.

Here are six quick ways to know if you above your limit and how to change the trend:

1.       Are You Always Discontent?

If you are easily discontent with your material things and constantly wishing for more, then something is wrong.

If it is difficult for you to see other people change their electrical appliances, buy nicer cars, move to bigger apartments, get better furniture or put their kids in more high-status private schools then your discontentment may push you to making reckless financial decisions.

If this is your case, consider your spending habits and evaluate whether many of your spending are driven by genuine need or just a wish to satisfy what was never lacking or to please other people’s expectations and social pressures.

Make up your mind not live to impress other people by spending money you don’t have on the things you and your family do not really need.

2.       Can You Do Without Your Income For A Few Weeks?

If you and your spouse were to remain unpaid or lost your income; how long would you and your family survive for another, lets four months only on savings?

This would be a difficult proposition for so many couples. 

Well, if this applies to you, it is an indication that you may be overspending on today’s unnecessary wants while sacrificing future needs. If this is true, you need to seriously consider your present spending.

If you don’t have a budget, make one. Do you have a plan how to spend every Naira you earn? Sit down to make sure every Kobo is assigned to a specific budget category. Monitor your spending for the next 30 days to identify all potential “drain” areas.

Your ultimate aim should be to eventually have five months of your living expenses saved or put aside and be available in case of emergency or you experience unanticipated total loss of income.

To be continued…