By Barbara Davidson

Posted on April 27, 2020

Are You Living Within Your Means?

You may have heard the Jim Rohn quote, “You are the average of 5 people you spend the most time with”. Whether or not you agree, your friends, family and colleagues can easily affect your spending habits.

What’s the problem with comparing your bottom line to others? A lot depends who you surround yourself with — it’s much easier to let your budget loose when you’re trying to keep up with big spenders.

The only real way to know if you’re living a responsible lifestyle is to check in on your own finances. Take our short quiz to see whether you’re living within your means right now!

I spend at least 40% of my monthly income on my mortgage/rent.

True

False

Over the past five years, I’ve substantially upgraded my living arrangements and/or car.

True

False

I owe less debt today than I did a year ago.

True

False

I pay my credit card balances in full every month.

All the time

Most of the time

Sometimes

Never

In case of emergency, I have enough funds in savings to cover

Nothing — I do not have money available to me right now

One to two weeks

One or more month(s)

Two months or longer

I save money in a retirement fund each month.

No

Yes, but I’m not sure how much

Yes, but less than 5% of my income

Yes, more than 5% of my income

I _________ run out of money at the end of a pay cycle.

Never

Rarely

Sometimes

I regret purchases after making them.

Frequently

Sometimes

Rarely

Never

Going out with my friends is expensive — there aren’t many cheap alternatives.

True

False

Not Sure

My credit score is lower today than it was a year ago.

True

False

Not Sure

Except for rare or extreme situations, if I don’t have enough cash to pay for something, I won’t buy it.

True

Not Sure

False

Check Your Financial Lifestyle

You’re Living Within Your Means

Great job! Based on your responses, it looks like you’re living within your means. For more low-cost entertainment, check out the fun activities and ideas listed below.

You're Your Responsible, But Could Use Some Work

Based on your answers, it seems like you have a responsible budget. It’s good to have some room for unplanned expenses and the occasional treat for yourself, but prioritizing debt can help you in the long run. If you want to stretch your money even further, check out the resources listed below.

Your Lifestyle Isn't Sustainable Right Now

It seems like you might not have the most sustainable lifestyle right now. Without a practical budget, debt becomes much harder to eliminate. Check out the resources below to see how you can save and earn more money.

If You’re Living Within Your Means…

Great job! Based on your responses, it looks like you’re living within your means. For more low-cost entertainment, check out these fun activities and ideas:

• How to Make the Most of Your Weekend
• Holiday Traveling On A Budget

If You’re Your Responsible, But Could Use Some Work…

Based on your answers, it seems like you have a responsible budget. It’s good to have some room for unplanned expenses and the occasional treat for yourself, but prioritizing debt can help you in the long run. If you want to stretch your money even further, these resources can help you get started:

• 31-Day Budget Challenge
• Zero-Effort Methods to Save

If Your Lifestyle Isn’t Sustainable Right Now…

It seems like you might not have the most sustainable lifestyle right now. Without a practical budget, debt becomes much harder to eliminate. Here’s what you can do to save and earn more money:

• 8 Unusual Ways to Earn Money
• Resolutions, Tips and Tricks for a Financially Fit 2020
• Realistic Remote Work Opportunities to Make an Actual Salary

About Barbara Davidson

Babs is a Senior Content Writer and financial guru. She loves exploring fresh ways to save more and enjoy life on a budget! When she’s not writing, you’ll find her binge-watching musicals, reading in the (sporadic) Chicago sunshine and discovering great new places to eat. Accio, tacos!