Are YOU in Debt? Develop a Spending Plan.

Three easy steps to save money and get out of debt

A spending plan is another tool that reveals the impact that goal setting could have on your personal finances. A spending plan, or budget can help you get out of debt.

Financial goals will not necessarily have a dollar amount affixed to them. This will require that you either generate more income or reduce expenses or possibly, if you already have monies allocated, shift monies within your plan. In any case, your spending plan will let you know if your goal is financially possible.

Additionally, a spending plan can help you:

• Stay out of debt.
• Identify areas for potential savings.
• Provide a cushion for unforeseen expenses.
• Save money for long-term goals.
• Avoid impulse spending.

If you haven't already put your spending plan together, do it now.

Step 1 - Write It Down

• Estimate your monthly take-home income and expenditures.
• Gather information from your paycheck stubs, most recent statements, and available receipts.
• Look through your check register and/or credit card bills for purchases you may easily miss.
• Divide annual figures by 12 for monthly amounts; semi-annual figures by six, etc.
• Make "best guess" estimates when necessary.
• Add your own specific categories.

Step 2 - Monitor Your Spending...

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