There are several ways you can increase your income:

-- Get a bigger paycheck. Ask for a raise, land a new job that pays a lot more than your current job or get a second (or third) job to supplement your current income.

-- Win a lottery. Do keep in mind when considering this option that your chances of being struck by lightning are much better than winning a lottery.

-- Sell assets. Find a cash buyer for your grandmother's sterling silver, the boat or another asset you own.

All of these are ways for you to increase your income and to improve your financial picture. But let's get real. If you could do any of these things, you would have done them already, and we wouldn't be having this conversation. While in theory increasing your income is a way to change your financial picture, it is not always easy or effective. More income means higher taxes and increased work-related expenses. More income does nothing to address old habits of overspending and incurring too much debt.

Your second option for changing your financial situation is to reduce spending. Unless you are living below the poverty line, I am confident you can reduce your outgo without compromising your standard of living. The secret is to look at every area of spending and to reduce it a little bit. It all adds up!

-- Instantaneous. When you reduce your expenses, the money you don't spend remains in your pocket. It's your money, and it has been taxed already. Every expense you have is a candidate for some type of systematic reduction.

-- Less stress. Reducing your expenses forces you to focus on what really matters. You begin to notice unneeded "baggage." You're more willing to acknowledge what brings you joy, what needs to go and how to create the life you love.

-- More contentment. Throwing conspicuous consumption into reverse has a calming effect on adults and kids, too. Overindulging in stuff complicates life and causes much stress.

The key to achieving financial freedom is to live below your means. It takes a strong desire and a resolute commitment to reduce spending without giving up your style and your quality of life. And I know you can do it.

Don't worry that you're going to lose your dignity. In fact, no one needs to know about your new resolve to find ways to cut your expenses drastically. You don't have to print "I'm Cheap!" on your forehead. A better option is to engrave this motto on your mind: "Wherever I am, whatever I do, there is a way to do it for less."

Mary Hunt is the founder of DebtProofLiving.com and author of 17 books, including "Debt-Proof Living." You can e-mail her at mary@everydaycheapskate.com, or write to Everyday Cheapskate, P.O. Box 2135, Paramount, CA 90723. To find out more about Mary Hunt and read her past columns, please visit the Creators Syndicate Web page at www.creators.com.
COPYRIGHT 2008 CREATORS SYNDICATE INC.