Living in an exclusive residential area, having a newer luxury car, using the best clothing brands or the most expensive cell phone on the market is something that looks quite attractive. More because all the “influencers” that we see on social networks give us an image of how well they have fun surrounded by luxuries. On this, the National Commission for the Protection and Defense of Users of Financial Services (Condusef) recommends never overspending and giving yourself luxuries with money that you do not have, especially if you are not an “influencer”:
Be careful: they usually have enough money for all this or the brands give them or lend those items to advertise them. So if you want to live like them but you depend on a salary and no other income – and Apple does not pay you for showing off your iPhone or Audi – you must create a balance.
Do you live above your financial capacity? It is the worst | Pxhere
Living beyond your means, this involves many problems in your personal finance. The main one is that during the last days of the fortnight you are counting down and with the tension that “they already deposit.” The worst thing is that this money, in most cases, you already owe.
Therefore, you must be realistic and know your limitations. Note: it is not an invitation to be a conformist. But to understand that you may not be in the conditions to give yourself the luxuries you have, more in situations of economic difficulties such as the ones we are going through.
Maybe if you lower your consumption a little you can have a better balance in your personal finances. For example: switch to a phone that works for the same as the one you currently bring. Don’t buy the half-million-peso car if you can buy a $ 200,000 one. If you are renting a house or apartment, maybe you can start paying for your own property for that money. (In the worst case, you transfer the credit and get something back, never renting). You should also identify and remove the ant spending.
Living above your means implies that you will always be under a lot of stress, living in debt with banks and this will make it impossible for you to enjoy the luxuries that are supposed to, they should generate a certain well-being.
Uncomfortable question: What would happen if you lost your job today and it took you six months to replace yourself? Try to lower your expenses and thereby generate an emergency fund. That really will give you the peace of mind you deserve for so much effort. Even saving will allow you to give yourself certain luxuries, but buying it is not the same as taking debts on yourself.