Although it may seem obvious, many people don’t follow this simple principle that you should not spend more than you earn. If you are using debt to compensate for your overspending, you are living unsustainably, and need to act immediately! The first part of spending less than you earn is to track what you earn and what you spend. When asked, most people cannot accurately answer how much they earn and how much they spend each month or year. Furthermore, most cannot accurately explain how much they spend in key areas – automotive, housing, groceries, etc. The only way that you can take control of your finances is to know where all your money is going.

If you find that you are spending more than you earn, there are two options: reduce your expenditures and increase your income. There are many ways to accomplish both of these options. To increase your income, you may try to work additional hours at your main job or pick up a second job. You may try out a gig-economy job such as driving for a ride-sharing company or delivery service. You could online tutor, babysit, shovel snow, rake leaves, or mow grass. To reduce your expenditures, you can reduce your restaurant dependence and meal prep at home. You can take public transit or cycle instead of driving or ask your supervisor if you can work from home. You can cancel underused subscriptions and reduce your retail shopping.