One way to keep track of whether or not you live within your means is to do a personal income statement. Take what you make each payday or time period such as a month and subtract what you spend. If the number is positive, then you are spending less than you earn. If that number is negative you are either leaning on savings or credit to prop you up. If it is negative, you need to figure out a way to earn more and/or spend less. It’s preferable to make more and spend less.