- Date : 15/11/2017
- Read: 3 mins
Worried your lifestyle is negatively affecting your finances? Have a look at these 4 signs to figure out if you are living a lifestyle you cannot afford.

Do you enjoy living a lavish lifestyle? Having the latest gadgets and best fashion trends are things that we all want. But you may not always be able to afford this kind of lifestyle. If you notice any of the following signs, it is probably time to reconsider your choices and the way your live.
Unending credit card bills
Is a significant amount of your salary going towards paying your credit dues? If yes, then you must look at your finances and expenditure. To cut back on credit, you need to first and foremost, re-evaluate your expenses. By having a look at your expenses, you will be able to pinpoint where you can and should cut back. If you spend only on things that are necessary, your credit card bills will reduce on their own.
Related: How to come out of credit card debt
Very little money in savings
Savings should be an essential part of everyone’s lives. While it is a must to start saving right from the day you start earning, the amount you save is also important. If your lifestyle leaves you without enough money to save, following this process can be difficult. So, how much should you be saving every month? Most people advice to invest at least 20% of your monthly earnings, if not more.This is the minimum amount you should be saving every month. But remember, while this is a small figure, saving even this much can become difficult if your expenses are higher than what you earn.
Bad CIBIL Score
Your CIBIL Score is a 3-digit number between 300 to 900, and is what lenders check when you apply for a loan or credit card. This score shows how timely you have been with making credit card and loans payments. Apart from being of use to lenders and banks, the score can also help you keep track of how you are doing, financially. If you have a low CIBIL score (anything below 700 is seen as low by banks), this is an indication that you need to start making payments on time and managing your finances better.
Related: Things to Consider Before Picking Up a Credit Card
Broke on Payday
This is another sign that you are living a lifestyle you cannot afford. Being left with almost no money before salary-day is not just poor finance management, but can also be dangerous when faced with emergencies. Many reasons could contribute to this situation; spending money before you actually have it, buying things you don’t need, eating out regularly etc. These may seem like small expenditures, but when accumulated it accounts for a lot.By cutting back on little everyday expenses, you will be shocked to see how much you can save.
Related: 7 things you must do on your payday [Infographic]
These are just a few ways in which you must keep a check on yourself and your finances. It is not uncommon to want a nice lifestyle, but you must be able to afford these luxuries. Even if you do not have the lifestyle you desire today, start saving and aim to achieve that lifestyle in the future.