Take This Quick Quiz to Find Out If You’re Living Within Your Means

Here at NerdWallet Canada, we think 'living within your means is purposefully spending less than you bring in, so you can cover your needs and obligations without borrowing, and still set something aside for what’s next.

It subtracts your essential and non-essential spending from your monthly take-home income. If 10% or more is left over, you’re within your means. If less than 10% is left, you’re at your means. If you spend more than you earn, you’re beyond your means. Your answers about credit and debt can also place you in “beyond” when your leftover is under 20%.

Take-home income is what you receive after tax and deductions, from all sources. If you share expenses with a partner or family, include their income too.

The numbers alone can miss the impact borrowing is having on your long term financial health. Using credit for essentials, making only minimum payments, or watching your debt grow can mean you’re living beyond your means even if a month looks otherwise balanced.

Not necessarily. Housing, food and transportation costs are often hard to control, so it isn’t always about personal habits. Seeing where you stand is a useful first step.