This tip typically elicits laughter (and the occasional eye roll), but while it sounds simple, it is not always easy to execute. Your financial well-being depends greatly on your ability to spend less than you earn. Successfully living within your means facilitates saving for your goals and minimizing debt.

The connection

To stay on track, you must understand the relationship between your financial decisions. While each transaction may feel unrelated, they are actually connected, similar to beads on a necklace. Every choice links together, forming a single strand that determines financial well-being.

Rarely does one decision make or break financial success (although, this certainly can happen) - you likely will not fail to reach a goal because of one lavish night out or one shopping spree. Instead it is an overall attitude and repeated behavior that leads to a series of bad choices and ultimately financial troubles.

Embrace your income

The goal is to change your perspective and find balance. Enjoy today, while planning for tomorrow and STRATEGICALLY taking on debt when it is truly necessary. Yes, debt is a factor of life for most people, but at the end of the day it is still a four letter word – meaning it’s bad. Debt costs money, stress and time. You should never carelessly assume debt.

Create and recognize boundaries for yourself. This starts with accepting and respecting your income with disciplined decision-making and intentional actions.