If you habitually spend more than you make, you’ve got a debt problem. In fact, if you’re spending more than about 80% of your net income, you’re probably headed for debt problems (that other 20% should be socked away in savings and contingency accounts). Your net income-what you can actually spend-must satisfy the basics such as housing, utilities, taxes, and food purchases and also satisfy your desire to have fun. If your net income doesn’t even cover the basics, it’s time to seriously restructure your finances before the seriously restructure themselves. If your net income covers the basics but you’re blowing it on the extras, then you have a debt problem that can be-and should be-proactively managed.