How to Get Your Finances in Control

by Mary Ann Romans | More from this Blogger

26 Feb 2009 11:32 AM

If you feel as though your finances are out of control then you will want to read this post. I'll walk you through some steps that you can take to figure out exactly where your money is going and how to stop it from flowing out of your door without your conscious consent. Getting your financial situation under control will help you live a better life and avoid being left with nothing.

The first thing that you need to do to get your finances under control is to create a budget. No one really likes to make a budget. Not only is it time consuming and sometimes difficult, but it also makes you face some things that might not bee too pleasant. Still, you have go to create a budget as the first step of gaining control of your money.

Make some time to create your budget. Shut off the television, get someone to babysit the kids and just sit down and do it. Take out a yellow legal pad or your favorite software spreadsheet.

Start by writing (or typing) down your major regular expenses by month such as housing (mortgage or rent payments), utilities and car payments. Next add in child care or school expenses, credit card payments, entertainment, restaurants, lawn maintenance, gas, health co-pays, and any other regular places where money goes. Also, take a look at yearly or semi-annual expenses, such as a water bill, property taxes, car insurance, disability insurance, furnace or chimney cleaning, etc. These latter expenses should be broken down into monthly payments for the sake of your budget.

Add up all of the expenses until you can see exactly how much needs to be spent each month.

Next, take a look at all of the income that is coming in to your home after taxes. Are you spending more than you make? If so, you'll have to address this fact and make some decisions.

Check back for some ideas about reducing your debt.

Mary Ann Romans writes about everything related to saving money in the Frugal Blog, creating a home in the Home Blog, caring for little ones in the Baby Blog and now relationships in the Marriage Blog. You can read more of her articles by clicking here or subscribe to the blog using the subscription box on the right.

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Learn more about Mary Ann Romans

Mary Ann Romans is a freelance writer, wife and mother of three children. She lives in Pennsylvania with her husband, the kids and a 16-pound cat.

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