getting back on track

After you’ve determined what you owe match that to what you bring in every month.  Is there money left over?  If your answer is no then you need to look at your list and determine what is a want and what is a need (television is a want, shelter is a need,) and make adjustments accordingly.  If your answer is yes, then it’s time to start an emergency fund.

An emergency fund is extremely important. This is the fund that is going to get you through those unaccounted for bills that ALWAYS come up (flat tires etc.)  Even if you can only put in $50 dollars a month your still putting space between you and life and that’s a good thing!

Once you have your budget outlined hang it up.  Hang it by your phone, in your office, on your front door heck, put a copy in your car.  That way if you are tempted to get off track you’ll have a visual reminder of what you are working for.  I have a copy of my dream house hanging up next to me as a reminder.

There is a golden rule to getting out debt and it’s STOP using credit cards. If you want to get control of your finances and life, you’ve got to stop borrowing money. When you use credit cards you are ALWAYS borrowing money - period.

Start paying off your debts. Now that you have some money saved up, and you’ve committed to stop using your credit cards, it’s time to start paying off your debts (pay off the smallest debts first.)  If at the end of your budget you’ve pinched every which way and you are still in the hole then it’s time for you to get a second job.  Do whatever it takes to get back on track.