Are you truly living below or above your means?

You often read that it’s only the amount you earn that matters and this basically speaks more about how you steward your money. This is what will truly make or break you. So what is your answer to the question: Where are you living, Below or Above?

A few questions to help determine where you are on the scale:

Above

1. Borrowing from other pots or savings during the month

2. Budget is overspent

3. You cannot see how and where some of the money is going

4. You pay does not cover your expenses

5. You rely on credit cards regularly throughout the money

Below

1. Your budget has scope for savings for short and long term financial goals

2. You have enough money to cover your expenses with your pay

3. You do not have to rely on credit cards or taking any money from savings during the month

4. You have a budget that fits and includes your wants

5. You have peace of mind about your outgoings

If you find yourself in the above category, here a few things to start to start doing to help you manage your finances better:

1. Write down all your outgoings, income and see how much you need to try achieve a positive balance

2. See what you can cut back or out off your outgoings and how you can earn more if possible

3. Set a realistic current budget

4. Pay off any debt that can be quickly paid off

5. Make lifestyle changes that suit your current income

This will help you to see where you are at and establish a better financial position for yourself.