Most of us live our lives paycheck to paycheck. What we earn is what we spend. When our income drops we feel pressure, when our perception on consumerism changes, we go for more spending. And when spending becomes more than income it becomes a bad disease, called debt.
It is important that you should stop living on borrowed money, but it is a reactive decision, a more proactive decision would be to budget your yearly spending right at the beginning of the year. That will tell you how much you need to spend to not to rely on borrowed money. A budget will tell you whether you are going to be infected by indebtedness with a negative cash-flow or you are going to stay financially healthy with positive cash flow.
Why Budget Is Essential To Keep Finances In Order?
A budget would take you to the path of the most basic personal finance fundamentals, earning more and spending less. You need to stick to your spending limit, it is all you need to do from there on once your budget is done.