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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.