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More and more people are finding themselves in debt, so the concept of living within your means without debt is one well worth exploring. So, what does it mean to “live within your means without debt”? Living within your means signifies being on top of your finances. It means always knowing exactly how much you can afford to spend on a given thing or in a given area of your life. It means a low-stress financial outlook and lifestyle where you don’t loose sleep trying to figure out how to pay for that new jacket, car, vacation, or whatever your weakness might be. Here are some tips for adopting the philosophy of living within your means and learning the joy of living without debt.

Spend less than you earn.

This is a simple mantra that you should adopt to live within your means without debt: spend less than you earn. It really is that simple. Most of us, however, do the exact opposite. In order to spend less than you earn you need to sit down and face the facts of your current finances. Do some simple math: how much gross income do you take in each month? Next, subtract how much you need for life’s essentials, including putting a roof over your head, food in your body and clothes on your back.

How are you spending you money?

Here are how the experts day you should be dividing your hard earned money each month. You should be spending 35% of your monthly income on housing and housing-related costs like repairs and the electric bill. Transportation costs should equal around 15 % of your monthly income. Shopping, food and entertainment should come in at about 25 %. Around 15 % of your income should be aimed at clearing any remaining debt and finally, don’t forget to pay yourself. Around 10% of your income should be put into savings.

Study your numbers

Now that you have the numbers of how your monthly spending should be broken up, do the numbers and see how your current monthly spending stands up. Are you spending way too much on your mortgage or rent? Are you splurging on entertainment or shopping sprees? Are you spending enough each month on clearing those credit card and other debts or are you only paying off interest? Are you saving anything for emergencies or the future? These can be hard questions to answer, especially if your think the answer is going to be “no”, but it is also a very important step to take if you are serious about living within your means without debt.

The number one secret to living within your means

This is not really a secret – most people who are debt-free or serious about becoming debt-free can find this out for themselves. What is it? Live below your means – that is spend less than you make. A lot less. How can you do this? Try to attack the problem from the angle that you know needs attention. For instance, if you are a shop-a-holic, work on curbing your shopping sprees by making – and sticking to – a list that you’ve made before even stepping out your door. Also, try consolidating your shopping trips into one trip rather than making smaller trips spread throughout the week; that way you will have fewer opportunities to be tempted to buy something that you don’t really need or can’t afford. And, make the choice to but supermarket brands rather than name brands and you will find you’re spending much less at the till.

These days, most of us are doing a funny dance. It’s called the budget balancing act and it can make many of us feel crazy at times. However, keeping a budget and balancing it with the rest of our lives is a responsible and worthwhile enterprise. Budget balancing means taking responsibility for your finances, living within (or better yet, below) your means and coming out of it with our sanity intact. Here are some tips for living the budget balancing act and coming out ahead.

Make your budget real by putting it into real numbers

Many people make the mistake of thinking of their budget in abstract terms. “I’m on a budget,” you might tell a friend who asks you to accompany her on vacation, or to an expensive dinner. Most of us are on such a “budget.” But what does it really mean? Take your budget out of abstract terms and make it real. Sit down and do the math, as hard as it can be. Many of us avoid taking a good long look at our finances because it can be too hard, especially if we suspect we are deep in the red. It’s time to take control, and taking control means having the courage to sit down and take a good look at your finances. Take out your bills. Are you in debt, and if so, how much? Be honest and don’t overlook any accounts. Lying to yourself about debt is not helpful or necessary. If you are not in debt, but perilously close, figure out why. Most numbers don’t lie. Are you spending too much on housing? Is that extra car payment eating away at your budget? Are your child care costs soaring? Know your budget inside out-what you can and can’t afford, how you pay for things, your debt and credit score, and savings.

Keep a log book

If a log book sounds too technical for you, just think of it as a notebook where you keep your records. Make a note of your earnings, saving, debt and purchases. Think of your log book as a place where you can do your math. Your log book should be private and a place where you feel free to jot down notes, calculate interest rates and keep financial notes to yourself.

If you haven’t already, set up your bank account online

Almost every bank in the world now allows its customers to keep an online account. If you haven’t already, set up your account. This is an easy way to manage your accounts, check balances and make payments. Set up an automatic bill payment. This is an easy way to make sure that your payments are always made on time. Many credit card companies and banks will even send you email reminders and payment confirmations if you so choose.

Avoid debit cards if you’re on a strict budget

Debit cards are a convenient and safe way to pay for everyday purchases. They can also be very dangerous if you are on a strict budget and you are trying to save. If you are serious about saving money, forgo your debit card for a while. Once you have constructed a good solid budget, on pay day, head to your local bank or ATM machine. Withdraw enough cash to make necessary purchases and then tuck your debit card away somewhere safe. This is a surefire way to stick to your budget.

Check your interest rates

If you have credit card debt, do you know how much you are paying in interest? Especially if you are juggling several accounts, it can be easy to forget or overlook interest rates. How much exactly are you paying on purchases and balances? Check with your credit card for this information. If you have long-standing accounts in good standing, try to lower your interest rate.

So, you are tired of being broke, and you keep telling yourself that you want to save. Here are some ideas to help you stop living paycheck to paycheck and some simple solutions to your money management problems.

Do you know how much money you actually need to cover your monthly expenses? Make a list of how much money is needed to cover your rent, food, clothing and other basic necessities. If your list of expenses is greater than the amount of money you are earning, then you either need to find better-paid employment, or you may need to consider that you are living above your means (I have an article on my blog that can help you with that). The next step is to allocate money for all of the important expenses and also allocate a reasonable amount of money for entertainment.

Never go shopping when you are hungry. Generally you can spend between 10 to 20% less at the grocery store if you aren’t hungry and craving everything in sight. You will also be more inclined to purchase healthier foods which last longer if you shop on a full stomach. Take a list with you and stick to it. Not only will that save you money at the register, but you will save on transportation expenses by not having to make repeated trips to the store.

Avoid using credit cards, shop with debit cards instead. That way you know exactly how much you can spend and you will be more likely to not overspend. Is you are contemplating buying an item on credit, make sure you are able to make at least the minimum  monthly payment – and better still more than the minimum – every single month.

Build up an emergency fund. Start setting aside an amount each month so that if your car breaks down, you lose your cell phone, or your child is rushed to hospital you will have the money available to deal with it. This may be easier said than done, but it will save you stress and trouble. All it would take perhaps to create an emergency fund is a few less bottles of soda, packs of gum or children’s toys (yes, in most cases your kids do already have enough toys).

Keep track of spending. Make sure you check you bank account before you withdraw more money to go shopping. It will save you in the long run, especially from bank overdraft fees. By keeping track of your expenses you will likely save more than otherwise, and that extra money can be put to much greater use, such as being put away for emergencies or invested for a profit.

Above and beyond the amount you regularly save each month (10% is a good proportion to start with) it is recommended that you plan for your future by investing in some way. Plant your money in an investment account, or start a business so you can have a more enriching career. Place your money in an IRA, or try your luck in the stock market.

Analyze any risk before you make any major investments, and it’s recommended that you get advice from a financial adviser. Also, carefully consider any risks when making major purchases, such as a house, car or other long-lasting item. Remember that you will need to be fairly confident given your current financial status that you will be able to continue to make payments.

Avoid taking out payday loans or any other easy credit. Although these have been helpful to some people who really find themselves in a financial jam, they can be used as a quick fix all too easily and can be addictive. Soon you could find yourself needing to commit your whole paycheck to money you have not even seen yet if you get into this habit, which is very hard to break. Also, consider that the interest on these types of loans can be as high as 20% and sometimes more.

One additional tip to remember is that just because you are offered credit, it doesn’t mean you should take it. Work to break the cycle of debt and not fall deeper into that particular hole. If you need further assistance with money management see a debt counselor. The internet is also full of money-saving tips for individuals and families.

Obtaining you college degree is one of the most important milestones of your life. You have just graduated, and even if you’ve landed your dream job, learning to manage you money is your next step. So if you’ve just graduated from college the following tips will be very useful.

Set yourself a budget – work out what you want and need to spend your money on and structure your spending in such a way so that you can enjoy life, but also start saving for your future – and your future credit report. It may be tempting to go spending your hard-earned money on gadgets, toys and trips, but set yourself a monthly entertainment limit.

In order to keep your credit clean you need to be careful to live within you means. As a recent college graduate you may find that obtaining credit is easier than you might have thought. That doesn’t mean you should respond to every credit card offered to you! Consider how much you can realistically pay back in a month’s time before you go tacking on yet another monthly credit card payment.

Save money! When you are young, and especially if you are single, is the best time to save money. If you already have a decent steady job you can put away money in case of financial hardship. In today’s economy having that soft-fall will make a massive difference if you should suddenly find yourself out of work. Furthermore, if you ever want to get married or have a family you will have a nest egg set aside and growing to help cover related expenses.

Humble yourself a little! Thrift stores and discount stores are not just for those earning lower incomes and many have great merchandise. There is no need to spend more than you need to on certain durable and semi-durable items. In fact, used or discounted items are available as alternatives to every purchase you plan to make. Find an economical cell phone deal. There are actually plan out there that can cost $50 or even less. There is no shame in pre-paid phones either, and the rates on those are becoming more and more reasonable.

To help you calculate your budget; follow these guidelines. Generally speaking, the amount you spend on housing should be about a third of your income. The amount recommended you save monthly is about 10% of your income and you should try and keep transportation costs at about 15%. For clothing, entertainment and other miscellaneous expenses you would set aside between 5 – 10 % of your total monthly earnings. Remember that you are only young once and when you are young it can be hard to thinks in terms of the future. If, however you take the advice in this article to heart, you will be less likely to find yourself 10 or 20 years from now wishing that you had saved more, or invested instead of spending too freely.

Invest a portion of your money. Over and above your savings, it is advisable that you invest a minimum of between 2 and 5 % of your monthly earnings at this time in your life. If you procrastinate, you may find that you’re not in a position to do this in the future, so do it while you can. If you have questions on what types of investments would best suit you, it’s recommended that you contact a professional financial adviser, or at least thoroughly research your options using books, financial magazines and the internet.

On the flip side of saving – there is no need to be so rigid with your money that you can never have any fun – life IS for living. It’s also good to help others after you have made your own finances secure. Aside from that, just continue to make choices over the years that you know you will reap rewards from and refrain from choices that have negative consequences.