Starting a new life… Part 1: Facing the Facts er… Numbers

I’m not going to bore you with the statistics about debt in the US, because for better or for worse we all have it. Now the problem with debt is that it is a quick rolling avalanche, for most people once that first bit of debt piles up it starts to carry on to other parts of their lives and pretty soon they have a huge mound of it on their door steps( I tried to do a witty analogy but pretty sure it failed, anyway you get the point). Point being debt is very easy to get into, correction with all the “flexible methods of payment” now available debt is extremely easy to get into, why do you think there is a whole industry devoted to getting you out of debt and pretty much also willing to get you back into debt.

So the great thing about this whole thing is that debt is actually manageable both when you have it and before it even begins. Like anything else in life it begins with a little bit of honesty. You have to be honest with yourself and with your finances. Pretty sure we’ve all heard it before start with a  budget, make a budget, budget this budget that… Well folks its true in this game you can’t go anywhere if you don’t have a budget, as a matter of fact you can’t do much in life with out a budget, not necessarily because they are essential but because they are pretty useful. So first part of this plan for me was writing how much money is coming in. That means if you’re salaried hourly whatever the case is just make sure you get an exact number to work with, this doesn’t really work if you guesstimate or round-up or down. Next thing is write down all your bills, ALL OF THEM, make sure you first write down your essentials ( car note, rent/mortgage, insurance, phone bill, water/power, etc.), next write your card debts (simple enough right, make sure you write down the exact minimum payment amount.

Now the reason I said that this is where you have to be honest with yourself is because the second part of this is seeing what is and what is not important. Stay tuned, see you soon.

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