THE other day I heard someone argue that most financial advice was of no use because it assumes that you have extra money and just need to find it.

"I have no extra money. Every cent goes to the mortgage, food or utilities. Financial people assume that if I just cut out the lattes and frivolous shopping, I could save money. I don't do any of those things and I still have no extra money. I can't bring down my debts and in fact, have to keep incurring more debt to live because I have such a small income," he said.

Many people feel like they're up against the wall financially. There's no money for necessities, so how can there be money to save or pay debt?

Sometimes circumstances beyond your control force you to live above your means temporarily. Maybe you've been getting along just fine and then a big medical bill hits. Or you have to repair the roof right after you had to replace the air conditioner and your emergency fund was depleted from the first problem.

These are things that can strike anyone at any time and unless you are adequately prepared, they can force you to spend more than you earn. Maybe you even choose to spend a lot more for a time, such as is the case when you decide to return to school so you can ultimately get a better job. But if you were living within your means, you could cut back for a while, catch up and then soldier on.

But some people chronically live above their means. If they ever hope to be financially sound, they have to adjust to living within whatever income you do make.

It might mean moving into a smaller place . It might mean using a used car or using public transport . Your life may not be fun, but incurring debt isn't a realistic option, either. At some point it will catch up with you and you'll find yourself in deep financial trouble.

• The first thing to do is to audit expenses by writing down every single thing you spend money on in a month.
• The second thing to do is to make the hard cuts and choices. Admit that you can't afford the rent or bond and that you have to find a cheaper place to live. You might have to sell the nice car. It's probably time to give up satellite TV, cell phones and fancy gadgets. It might even be time to sell some possessions to bring in extra cash. When you have no money, nothing is sacred. Everything is up for sale, cancellation, or renegotiation.
• Finally, find a way to bring in more income. Maybe it's time for a partner to go back to work.

It probably isn't going to be fun, but your life will be even more miserable down the road when you are too deep in debt.

You can make it work on whatever you earn and financial advice can help you. You just have to stop justifying and complaining and get out of your own way, start making the necessary sacrifices and learn to live on less. - savingadvice.com