Would you live right at your financial means?

[Toothie]

Lets say you make enough to afford a really nice place but that is it, nothing else. What you make goes toward all you have. Would you do that or live beneath your means so you always have security. I know it seems a no brainer but what if you have been living beneath your means for a very long time and your sanity is at stake. For example, I have lived at this place that is sub par for 6 years and now i have a job that pays more but it was by no easy means that I got to where I am. I have now piled up a ton of credit card bills. I just am sick of staying at a place that has no water sometimes and there are dogs barking at all hours of the night or day.. Do you see my dilemma. This other place is fantastic. Luxury but its also alot more. I could stay and pay off some bills too. Just would be hard to continue being around this. What do you think or what would you do? The managers here dont care by the way so no use in complainin..

 

[teresathegreat]

If you currently have debt, then you are already living beyond your means. You need to pay off that debt BEFORE you spend more money on housing, lest you jump out of the frying pan and into the fire.
On average, most people spend 25-33% of their gross (pre-tax) income on housing, which often includes utilities, so that should be your goal range. You should also apply about 8-15% towards paying off debts or saving for the future.

Remember, there is always a third option. Keep looking and maybe you can find a living arrangement that is both affordable and livable.

 

[zeuz]

I leave far below my means -- I'm thrilled that I do. Now, I add $6,500 / month to my savings. My house is paid for. My 3 cars are paid for. I travel several times each year to Hawaii and the Caribbean (all 1st class airfare tickets).