SPENDING FUTURE INCOME 3

If your household’s lifestyle pushes you to keep spending income several months into the future (i.e., live beyond your means and rely heavily on credit cards), it is time to take stock of your expenses.

List down all your expenses. Be absolutely honest and categorize them into:

(a) necessary
(b) can be spent if there’s money left after paying for necessary expenses
(c) luxury
(d) keeping up with the Joneses.

Obviously, the best move is to stop spending at Category (a).

image from Microsoft Clipart