So, I bought a book...yah, I know...cutting expenses, learning how to budget and save money...and I spent money...but clearly, doing this "myself" all this time has not been the best course of action. So, I did some research, read some reviews and settled on "Debt-Free Forever" by Gail Vaz Oxlade. I could tell you her credentials, but quite frankly, I really didn't pay attention.
The Introduction pulled me in immediately....YOU got yourself into this mess, YOU are going to have to work hard...only YOU can fix this. Chapter One is "Analyzing Your Spending." Gail instructed me to gather 6 months worth of credit card and bank statements...this was rather easy since I don't have any credit cards. Armed with six months of bank statements I proceeded to document every transaction into a category in a spreadsheet. I did the same with tracking my income. From there I had to total and then find the six month average. Based on my monthly average income, I am over budget by nearly $200/month. Well, that can't be good, can it????
The next question is: Where is it going? Was I surprised to find out where my biggest expenses were: Loans, Auto Loans, Insurance, Rent, Gas/Oil, Restaurants and Groceries. Doesn't seem all that bad...it doesn't look like we are spending on stuff we don't need....the loans aren't completely necessary and we need to get at least the first set of loans paid off....that will put a couple of hundred dollars in our pockets a month. Loans...they can help you get something you want/need/desire but they can cost you a whole lot of extra money.
Chapter two is "Face Up to Your Debt." I can't wait to start that tomorrow!
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