Get a Grip on Your Finances

One of the first things I did was to simply make a list on ledger paper of all my monthly expenses. For some reason the simple act of physically writing down all of my expenses and debts forced me to focus on them in a way you I might not have in the past. Don’t forget to list all the things you might pay cash for such as fast food stops, haircuts, movies, and pizza night that you might not otherwise have accounted for.

Next I divided up my expenses based on my income; for example; I got paid twice a month so I split my bills by the first and second half of the month. I asked myself, what do I need to pay with this paycheck and what can I afford to pay? Once I did this, I was able to get a better picture of what I was responsible for.

In the old days, I used to have several envelopes for such things as rent, food, phone, train fare etc. because I knew that if I put the money in the envelope, that’s what it was for. If you’re someone who struggles with discipline something like this just might help you.

Now take a hard look at your financial situation. If you are in need of debt consolidation then don’t delay (the longer you take to pay it off; the greater your financial responsibility). Look for no-profit organizations for help as your first step.

If you have a charge card or two that is in trouble, take the time to figure out what you owe and figure out ways to send extra payments to pay down the debt. It could be as simple as deciding that you will bring your lunch to work instead to buying it for the next few months or buying one less outfit.

If you typically spend between $5.00 and $7.00 a day for lunch then bringing your lunch will save you about $100.00 a month!! You could use this cash to pay down your charge cards! The key here is to trade off. The more you think about ways to save, the more ideas you will come up with. This process has many benefits because it will in power you to take charge of your financial freedom. The bottom line is that you will begin to feel good about the choices you have made even if that means a little sacrifice in the beginning. Remember – it’s all about your financial freedom.