Begin tracking your expenses for the last three months.
1. Go back and look at your bank statements.
2.If you primarily use your debit card, rather than cash, all your expenses (food, gas, entertainment, ext)should be fairly easy to figure out.
3.Go through your credit card statements too and check the charges you made. Don't forget the interest.
4. Review how much money you made.
So how much money did you make? Do you make enough to cover all of your expenses? Did you spend more than you made? If you spent less than you made, what did you do with the extra money? Doing this should help you determine where you can start cutting back if you are spending more than you make.
Now, what do you want to do? Do you want to start working towards a debt free life style? Things don't happen over night, but you need to start setting specific goals. When determining your goals be sure to have a completion date set for each one of them. So, if you are going to reduce your spending by $10 a day and start putting that money towards your credit cards so you can pay them off, what steps are you going to take to make that happen and how soon will you start. If you are living above your means you may have to take painful step in order to make things happen. You must start to figure out how to live within your means before you can get your finances under control and start living a debt free life style.
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