Reduce discretionary spending
If you are spending more than your monthly income, the first thing you can try is cutting your monthly costs. Look back through your expenditures over the previous couple of months (use credit card statements, bank statements, receipts and check carbons to piece together this record) and you can assemble a clear picture of how and where you spend your money. You will probably find that certain costs such as health care might be relatively fixed, while others can more easily be reduced or eliminated.
