ALTHOUGH some people claim to know the best methods for controlling their spending many people simply overspend.

This is where planning ahead and having a structure in place to manage your finances is critical. As many people will attest to - it doesn't matter how much money you have at your disposal you can always spend any amount. The keys to success are balance, planning ahead, and living within your means.

Managing your income stream requires only two elements: a plan; and enough self-control to stick to that plan. With this in mind, here is a simple strategy which you can use to make sure you don't indulge in overspending. Be committed to this strategy and your overspending days will be consigned to the annals of history.

1. A portion of your income should be assigned for you to live on. Ideally, this should be around 60 to 65% of your income. If you can maintain a healthy standard of living at this threshold you can allocate further resources to more pleasurable aspects of life. If you are fortunate to be able to comfortably live (to your standards) on a lesser percentage - by all means do so. The more you earn, the more you can reduce the percentage.

2. 5 to 10% (depending on your living income) of your remaining money should be used for savings and investment opportunities.

3. Place 10% of your income for pleasurable pursuits such as holidays, recreation, and life's joyous activities. You can also use this fund to pursue your dreams and aspirations. Rest and relaxation plays a vital part in the lives of people who have a balanced and consequently happy lifestyle.

4. A further 10% should be set aside for education. As many a successful entrepreneur will testify, 'education maketh the person'. Increasing both your income and having growing satisfaction with other areas of your life is directly related to the amount of education and knowledge that you acquire. Allocating a portion of your earnings towards education will no doubt vastly improve your future capacity to increase your bank balance.

5. If you have loans to pay, 10% of your income could be set aside to pay those debts. This way you always have a handle on your debts and are prepared. Another helpful tip if planning to take out loans and avoid overspending is to ensure that your annual repayments do not exceed 10% of your salary. Thereby giving you a comfortable limit to adhere to. If you are lucky to be debt-free this money should be put into your savings account. Thus giving you a buffer for rainy days.

Planning ahead to avoid overspending considerably reduces the heart ache of mounting debt. Not only will it save you financial burden, it will also give you peace of mind. A substantial amount of stress is related to money matters and this is very unnecessary. Why take on the strain of something that could so easily be avoided with some planning and self control. Use this model and you will be financially secure and well on the way to living within your means.