by Leigh Goessl

Created on: January 23, 2009   Last Updated: September 13, 2009

Today's society is built around instant gratification. If you want to buy something all you need to do is pull out a plastic card and you can get it. Over the years credit card companies consistently increase credit limits and banks have issued cards in order to make cash withdrawals easy to obtain 24/7. It's that easy.

The ability to access and temptation to spend treads into dangerous territory. Look at the situation of the current housing market. A significant part of the problem was due to people spending way beyond their means.

This is on a grander scale of spending of course, but is one good example of how people spend more than they make. It also illustrates the big problems which can arise if your spending gets out of control.

*Five Steps to Quit Spending More than You Make

1. Break the habit of pulling out the plastic.

The first step to quit spending more than you make is to face the fact you cannot afford certain items. You need to break the habit of pulling out the plastic every time an expenditure beckons to you or an impulse purchase calls out your name.

One way people get themselves into trouble is to pay their bills with credit or debit cards and don't carefully track what they pay off. This can inadvertantly give the impression there is more in a bank account than what really exists; or if the credit card is being used in lieu of checks to pay monthly expenses this can give you the illusion of a hefty bank account if you are thinking in the "now" and not the "later".

If your credit card bill cannot be paid off each month you are spending beyond your means. This of course discounts an emergency that has arisen. An emergency can be considered a car breaking down or a medical doctor visit which needed an immediate payment; an emergency is not a dinner out or a new pair of shoes.

2. Distinguish between "wants" and "needs".

If you make a list of everything you bought last month you'd probably realize there were many items you bought which do not fall within the "need" category, but instead were either impulse buys or coveted purchases which fall under the classification of "want".

If you can differentiate between the two you'll find your monthly spending be reduced significantly and you can begin to catch up on any accumulated debt you have to date and begin to pull yourself out of the red and into the black.

3. Make a budget

Following a budget isn't always the easiest thing to do, but if you really need to reconcile your earnings with your spending

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