Pergunta · Diagnosis

How to know if I am spending more than I earn?

A blown budget almost never warns. It manifests in signs that seem isolated, but together, they are obvious. The three below are the most reliable.

Sign 1: balance dropping month by month

Take the checking account balance on the last day of the last 3 months. If the curve is descending without a major purchase justifying it, you are consuming assets. It is the most reliable sign.

Sign 2: card usage above monthly income

Add up all card expenses (cash + installments that will enter) in the month. If this number is frequently above your net income, you are living on credit, not salary.

Sign 3: recent revolving or overdraft

Any use of revolving or overdraft in the last 3 months indicates a blown budget. It is not an "isolated difficult month", it is a pattern.

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