There may be circumstances that come up where it is necessary to take money from your emergency fund or borrow money but in most cases it is important to live within your means. If your financial circumstances have changed it is important to change your spending to match your income. The longer you wait, the more financial trouble you will get into.

There were a couple of guests on a recent Suze Orman Show that had a problem living within their means.

One of the guests and her family were going into debt by $3,000 each month for a number of years. Usually, in cases like this, Suze goes through their expenses and tries to find areas they can cut back on. In this case, she could not find $3,000 worth of expenses without the family making major changes in their lives. They have a son that is getting ready to go to college and she was shocked to find out that she would likely not be able to help him get financing for college.

One of the segments on the Suze Orman Show, is “Can I Afford It?” where callers call in with their financial information and something the are thinking of purchasing to see if they can actually afford to purchase it. One of the callers was a 57 year old woman who wanted to take her daughter who was graduating from college on a safari. The cost of the trip would be $28,000. Her monthly income is $1,961 and expenses are $2,095 so she is spending more than she brings in each month. She has $29,000 in liquid savings and no money saved for retirement. So needless to say she was denied. She is spending more than she makes and wanted to spend all of her savings on the trip.

Trying to get Suze to change her mind she said she wanted to take her daughter on this trip because she had worked so hard at school. And she is getting $80 a month rent from her son since he uses her garage or something for his band to practice in.

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