Analyze Current Debts

1.      Get a program like Microsoft EXCEL and create a three column list with the headers “IN”, “OUT” and “Description”. If you do not have a computer or EXCEL, do it the old-fashioned way. Get a piece of paper and write down the words.

“IN” refers to any incoming income for the month, “OUT” refers to outgoing monies for the month and “Description” is a description of the expense.

The spreadsheet must look something like this:

IN

OUT

Description

$2000

$700

Rent

 

$315

Car Note

 

$45

Home Phone

 

$45

Cell Phone

 

$50

Cable

 

$100

Gas

 

$75

Electric

 

$25

Water

 

$50

Gasoline

 

$175

Grocery

 

$100

Lunch

 

$250

Credit Card Bills/Loans

Balance/Interest Rate /Minimum payments:

·         Credit Card A $5000/12%/$50

·         Credit Card B $1200/17%/$70

·         Loan A $575/8%/$80

·        Loan B  $7700/6%/$50

 

$250

Miscellaneous

·          Dining out $100

·          Shopping $50

·          Movies $50

·          Nails  $30

·        Clubs/Bars $20

$2000

$2180

-$180


You will notice that in this example, we are in the red by $180 this month.  You are spending more than you earn.


NEXT: Make Tough Decisions