What should I do if my expenses exceed my income?

When expenses exceed income, three alternatives are recommended: increase income, reduce expenses, or a combination of the two. To understand where your money is going and to identify ways to cut back, consider tracking your expenses for a month or two.

Three short-term options are also available: sell assets, use savings, or use credit.However, it is important to use these options only for the short term. Longer term use of these options could lead to major financial difficulties and possibly …