Take The First Step to Get Out of Debt…
June 30, 2007 – 9:00 pmWelcome to Working For Financial Freedom. If this is your first visit please read about this blog. You can keep updated by subscribing by email or to my RSS feed. Thanks for visiting!
by making a budget.
Get out a piece of paper and write down all of your bills for each month. Food, gas, TV, internet, mortgage/rent, electric/gas, phone, water, credit cards and loans etc…
Now, add them up. What is the dollar amount you need to pay all your bills each month?
Write down what your take home pay (after taxes) pay is. Is that number higher or lower than the amount you need for your bills? The goal is to have the amount you spend on your bills much lower than the amount you earn each month. The more money you have leftover, the more you’ll have for paying off and credit cards and loans.
This may seem like a simple task, but the hard part for many is not spending more than you budget for. The reason many people are in debt is because they spend MORE than they make. Make a budget and stick to it.
More details on making and keeping a budget will come later.
One Response to “Take The First Step to Get Out of Debt…”
It is vital for everyone to establish a budget; It reduces the stress of knowing what needs to be done regarding your finances. It’s akin to doing a term paper in school and having it done by a certain time. The key is to follow the budget on a daily basis by writing down what you spend; for me buying lunch everyday when I don’t go to the Grocery Store adds up and is considered an out of control area and I must address the problem. My household expenses are being corrected as well and I gaining control of my budget and bein aware of the budget killers. I am a high wage earner with no children and unmarried and I want to get out of debt and I’m willing to get down to the root of my issue so I can resolve it and win and I shall see the results of discipline and sacrifice.
By lydia on Feb 27, 2008