Take a Breath, Time to Budget



Now that you’ve had a chance to look at how much you truly owe, you may need a second to catch your breath. I know I did. I think I needed a few days to really analyze the gravity of my situation and come to grips with the poor decision making that led me to this point.  I wondered if any efforts at this point would be futile. Even if you could crawl under a rock, the debt would still be waiting for you when you came out for air.

Time to deal with it head on!

So, where do you go from here? Time to create a budget!


Yes, the dreaded B word.  As with many of the steps that we explore, I’m going require that you change your mind frame. Think of a budget as you telling your money where to go, so that you don’t have to looking up and wonder where it went.

I will provide a quick and easy outline of a basic budget sheet. I don’t care if you use mine, but if you want to reach you goals, you need to use one! Tweak the one I’m proving so that it fits your life or create your own from scratch–either way, you cannot move forward without it.


Income Expenses
Monthly Gross Earnings Housing
Subtract 28% for average withholdings Utilities
Monthly net income Medical Insurance
Student Loans
Monthly net income Transportation Expenses
Subtract monthly expenses Grocery Items
Results Should be zero!!* Emergency Savings Goal is $1000
Child Care
Debt Repayment
Car Debt/Gas

*why zero? because you should have assigned each and every dollar a home under the expense column. Tell you money where to go! You are in control!!
Emergency fund: $1000 for annual income greater than 20K—-$500 for annual income under 20K.



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First steps to Financial Freedom

First steps to Financial Freedom


“Where do I start…What do I do first?”

Well, the first step is recognition that there is a problem.  I know that sounds like the opening speech in some AA intervention group, but it’s the truth.  You have to think of the process that has gotten you to this point as an unhealthy addiction to stuff that you most likely don’t need, and in most cases don’t even want.

So now, facing the debt head on.  You need to know what you owe and to whom it’s owed.


I don’t care how you do it, spreadsheet, word doc, on a napkin, whatever–you need to write down each and every debt you have, and how much you owe.  Are you current? what are the minimal payments on each debt? Is anything in collections? (we’ll deal with those collection debts in a later post).

Next, how much do you make monthly?  What do you net monthly?  It’s important to know how much you truly have to work with after taxes, insurance, and what ever else comes out of your paycheck before you get your hands on it.


So, those are your first steps.  You need to figure out what you owe and what you make.

Take care of those two items and lets move forward on a plan…

We’ll see you on the next steps, stay tuned and share this with a financial workout buddy to really help your experience.



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Your Financial Wake up Call

Your Financial Wake up Call

What will be your wake up call….will you answer?


That ferris wheel of frustration that you just can’t seem to get out of.

Friday comes along, before you can even see the money, all your creditors already have their hand out ready to take their cut. Before you know it, it’s monday morning, and you’re waiting for your next check.  This was my life, and I hated it.

My husband and I sat down after a nice long argument relating to our finances and really took a look at our debts.  Before sitting down the line that we said the most often was  “there’s no reason we’re making so much money and be this stressed out about money”.

After listing all of our debts, we knew why.  We were spend far beyond our means.

Like many of us, we look at something that we wanted and said “we can afford the payments on that”.  It was that simple.

We had to change the way we were thinking about money.


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