Lucas Graham
Living beyond your means isn’t always a conscious choice. In fact, many people fall into this trap without even realizing it, often driven by habits or mindsets they’ve developed over time.
If you’ve ever found yourself struggling to save money, juggling credit card payments, or feeling like you’re always playing catch-up financially, it might not just be about your income—it could be about your behaviors.
Today, we’re breaking down 5 common habits that people who live beyond their means tend to display.
Recognizing these behaviors is the first step toward breaking the cycle and building a healthier relationship with your finances.
Let’s dive in!
1) Giving in to immediate gratification
Picture this: you’ve just finished work, and you decide you deserve some time to unwind with a bit of social media scrolling.
You start scrolling, but before you know it, you’re at an online checkout purchasing something you had no intention of buying but now suddenly “need.”
Sound familiar?
You’re not alone. Research shows that “48% of social media users say they have made an impulse purchase of a product they saw on social media.”
And it’s not just online—impulse purchases happen in stores too, driven by clever displays, limited-time offers, or simply the thrill of buying something new.
The problem with this is that it prioritizes short-term satisfaction over long-term stability.
Giving in to immediate gratification often means spending money you hadn’t planned for, and those little indulgences can quickly add up, creating financial strain over time.
The solution?
Practice pausing. Before making a purchase, ask yourself: Do I truly need this? Does it align with my financial goals?
Waiting even 24 hours can help you separate genuine needs from fleeting wants, saving you from buyer’s remorse—and keeping your finances on track
2) Not having a budget
Imagine planning a trip—deciding where you want to go but having no idea how you’ll get there. No flights booked, no map, no plan.
Well, that’s kind of like trying to live within your means without having a budget. And it’s more common than you might think.
Research suggests that 40% of people have never had a budget, even though the majority believe that having one would help them reach their personal goals.
I get it—budgeting can feel restrictive, like a financial prison, and that’s why so many people put it off. But here’s the truth: freedom starts with discipline.
I know this firsthand. When I finally started budgeting, I thought it would be suffocating, but instead, it was liberating.
Knowing exactly where my money was going helped me feel in control and gave me the ability to prioritize what truly mattered.
It wasn’t about saying “no” to everything—it was about being intentional and saying “yes” to the things that aligned with my goals.
Trust me, creating a budget isn’t about depriving yourself; it’s about empowering yourself. Start small, track your spending, and set realistic goals. Your future self will thank you.
3) Lack of savings or emergency fund
One of the most telling signs that someone is living beyond their means is the absence of savings or an emergency fund.
Having a safety net is critical for financial stability.
It helps you handle unexpected expenses like a car repair or a medical bill without having to rely on credit cards or loans, which can further exacerbate financial stress.
However, individuals who constantly live beyond their means often find it challenging to put money aside.
Their income is usually tied up in covering their lifestyle expenses, leaving little to no room for savings.
This lack of financial cushion not only creates vulnerability in the face of emergencies but also indicates a continuous cycle of overspending.
4) Putting everything on a credit card
Here’s one you probably expected.
Credit card companies love to tout the benefits of using their cards—cashback, rewards, deals, and even the opportunity to build your credit score.
But what they don’t emphasize is that credit cards can subtly encourage overspending.
Studies back this up: people who use credit cards are significantly more likely to spend more than they would with cash.
Why? Because swiping a card feels less “real” than handing over physical money, making it easier to justify purchases you wouldn’t otherwise make.
The problem with relying on credit cards isn’t just the potential for overspending—it’s also the snowball effect of accumulating debt.
When balances aren’t paid off in full, high interest rates can turn even small purchases into financial burdens, making it harder to stay within your means.
How to fix it?
Start using credit cards intentionally. Limit their use to planned purchases you can pay off immediately, and rely on cash or debit for everyday spending.
This small shift can help you spend more mindfully and avoid the trap of living beyond your means.
5) “Self-care” spending
If you’re a regular reader here, you know we often tout the benefits of self-care.
Activities like going for a walk, journaling, meditating, or spending time with loved ones are great ways to recharge—and they’re free or low-cost.
But here’s the thing: a lot of modern advertising has jumped on the self-care bandwagon too, promoting expensive options like spa days, luxury holidays, or high-end beauty products.
And their pitch is always the same: “You deserve it.”
Now, I’m not going to call it a “trap,” but it’s not far from it.
People who struggle to live within their means often fall into this mindset, equating self-care with indulgence.
While there’s nothing wrong with treating yourself occasionally, making it a regular habit can stretch your finances to the breaking point.
If this sounds like you, it might be time to reframe self-care. Focus on activities that nourish your mind and body without straining your wallet.
Think about spending time outdoors, catching up with friends, reading a good book, or even practicing mindfulness.
True self-care isn’t about spending more—it’s about creating space for what genuinely makes you feel rested and fulfilled.
You absolutely deserve self-care, but that doesn’t have to come at the cost of your financial well-being.
Final thoughts
Living within our means isn’t always about earning more—it’s about making smarter choices with the resources we already have.
Recognizing these habits and taking steps to address them is the first step toward financial freedom and peace of mind.
Remember, small changes can make a big difference. Whether it’s creating a budget, rethinking your spending habits, or focusing on intentional self-care, every step you take brings you closer to a more stable and fulfilling financial future.
