If one has cash reserves to spend, then your head is still above water. If you have assets to liquidate, then your head is still above water. It is within one’s means to spend what one has or to liquidate assets. To live beyond one’s means is to borrow. If anyone here doesn’t understand this simple principle, then you are in danger of incurring debt that you cannot pay.
Living beyond your means is pretty easy to do these days, especially since we live in a time when buying on credit — and having a YOLO mentality — has become the norm. But just because it seems normal doesn’t mean you aren’t doing a real disservice to your current and future well-being.
Here are eight red flags that you’re living a lifestyle you simply can’t afford — and how to get back on track ASAP.
Living beyond your means is pretty easy to do these days, especially since we live in a time when buying on credit —
Too costly for one, more than one can afford. For example, A second vacation this year is well beyond our means. The noun means here signifies “resources at one's disposal,”
If your resources are cash on hand, savings or real properties which can be disposed of, then it’s still living within one’s means to utilize them. Only when one incurs debt do they live beyond your means.
i am not quite sure why some here cannot understand this simple economic principle.
if I decide to sell my house and spend the equity, I am still within MY means. It is when I go to someone else to borrow THEIR means that I have gone beyond MY means.
Using cash reserves and liquidating assets to pay ...
It is MY cash, it is MY assets, and I can do what I want with them. It is MY means. Nobody is going to dictate to ME how I should use MY stuff.
Mine... get it?
Beyond MINE is yours... get it yet?
Please listen to that second accounting video that somebody just posted. The sister praised Jayhoov because the “bank” not mine, gave a line of CREDIT