The 6 Warning Signs That You Might Be Living Above Your Means

Rachel Abene
9 min readApr 5, 2021

What to look out for and what you can do about it now

According to Gartner, roughly half of Americans are spending more money every month than they’re making. At the same time, only 37 percent of Americans have enough in savings to cover a $500 emergency. And being strapped for cash isn’t necessarily a problem confined to low-income earners. GoBankingRates found that of those making $150,000 or more, nearly 30 percent had less than $1,000 saved. Taken together, these stats signal that a significant proportion of Americans are living beyond their means, risking going into debt when life inevitably happens, and forgoing the opportunity to build long-term wealth.

Right when I got out of college and started working my first real job, I began setting myself up to live a life that I couldn’t afford without even knowing it. Since I knew how much money I had coming in each month, had no problem paying my bills, and was even contributing a little to my 401(k), I assumed I was doing just fine. I even considered myself to be pretty good with money. But the slow leak of overspend on groceries, emotional spending, and other impulse purchases, left me in a pretty bad spot when I needed an emergency car repair and eventually decided to leave my job.

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Rachel Abene

Hi, I’m Rachel. I’m passionate about beauty, personal finance, and how the two often intermingle.