A warning sign that you may be living above your means is: You are not saving at least 5 Percent of your income.
Everyone should save 10-15 percent of their total income. But if you can’t save at least 5 percent — even while paying off debt — this could be a sign that you’re living beyond your means.
Everyone should have savings, and you should aim to have six to nine months of living expenses set aside at all times.
If you feel you can’t save any money, you are spending on items and services you probably don’t need. Pay yourself first.
How to do this? Give up things in the short term to be successful in the long term. If you cut back each month, by not eating out, not going to the movies, or whatever it takes for you to spend less, you will have more money to save.