If you're having debt problems and have decided to take care of this problem then the first thing you should do is review your spending habits. Many people are amazed when they see how much money they waste on things such as take out food, coffees and even cable channels they don't really watch. The first thing you should do is make a budget of your actual spending. Once you know how much and where your spending your money on you can then make adjustments to your spending habits.
Use this simple budget spreadsheet to get a better idea of where your spending your money on. Download our free budgeting spreadsheet.
Step One - Enter your income. This includes pay checks, commissions, interest earned from investments, ect.
Step Two - Enter your fixed expenses. These are expenses that don't change month by month. This includes mortgage/rent payments, insurance, car payments, ect.
Step Three - Enter your variable expenses. These are expenses that vary from month to month. This includes food, entertainment, gas costs, ect.
Step Four - See the results.
If your final number is negative or close to zero then you should probably start making some changes to your spending habits.