So, you have some debt. When you owe people, you can feel the weight on your shoulders. You know that any big financial problem or trial in your life could completely turn you on your head.
The best place to start to get yourself out of that position is to make a budget. If nothing else, get started by listing out your expenses in a month and the income you take home. (Don’t look at your gross income, that will just make you sick 🙂 )
Then look at where your money goes. Do you spend a lot on things you shouldn’t? Do you waste a lot of money? Chances are, if you aren’t working off a concrete, written-down budget you are letting money fall out of your wallet daily.
Take some time to write these things down. Physically. Then take a week, month, or a couple months to actually track where your money goes. You may be shocked at all the holes you have in your finances.
Homework: Track your spending for 2 weeks (or however long your pay-period is) Then evaluate whether you can do some trimming, or whether you need to find some more income!
Friday in America is very synonymous with payday. We finally get what we’ve earned over the past week, two weeks, or a month if you are a teacher (why do we have to do it monthly?). Majority of America will take that check, run out and pay bills and blow the rest, leaving little for savings or a rainy day fund.
We seek the immediate gratification over the peace of financial responsibility and stability
“Man, making a budget is fun!”-said nobody. Ever. However, you will find out a lot about your spending habits, your values, and how much you are actually blowing on that run to Starbucks 3 times a week. It adds up! It’s really simple. Just add all of your income and write it down in a column, labeling each item. Then make a column of Expenses. List all of these for a month and be as specific in your categories as you can (you can simplify this more later). You will be on your way to tracking where your money went. To adapt what Dave Ramsey says, you will go from wondering where your money went to happening to your money. Successful people happen to life (dictate, attack, are active) instead of reacting to what happens.