Yahoo Finance published a good article entitled Five Signs That You’re Living Beyond Your Means.  Here are the five signs as well as measures you can take if you find yourself in any of these situations.

1. Your credit score is below 600 - If this is the case, the first step is to pull a copy of all three of your credit reports.  If you have accounts in collections, you need to resolve that first.  Many creditors will allow you to go on a payment plan.  However, you MUST pay them according to that plan.  Don’t make promises you can’t keep.  Next, bring any past due bills current.  Those two things will have the greatest impact on your credit score.  After that, only time will improve your score as the negative items fall off.
2. You are saving less than 5% - I recommend saving 10% for retirement as the bare minimum.  You also need to have an emergency fund of at least three months’ expenses.  If that’s not possible at this time, establish a mini-fund of $1000.  That amount will allow you to stop using credit to cover unplanned expenses.
3. Your credit card balances are rising - If this is happening, you are spending more than you make and it needs to stop NOW.  Take a long, hard look at your spending and see where you can cut expenses.  Reduce your cable package, lower your cell phone bill, stop buying clothes, stop eating out, etc. until you take control of your debt.  The first step is getting out of a hole is to stop digging.
4. More than 28% of your income goes to your house - This issue is not as easy to resolve but it still needs to be considered.  First consider increasing your income.  Then consider decreasing your housing costs.  If you’re not renting, that may be hard but you need to evaluate what steps you’re willing to take to improve your financial situation.  The economy will probably get worse before it gets better so why live on the financial edge if you don’t have to?
5. Your bills are spiraling out of control - Lay out all your bills and start cutting things.  Eliminate the fancy cable, the home phone, any non-essentials.  Get a roommate (if possible) if you have to.  Extreme times call for extreme measures.