step 2

Now that you have a real picture of where you spend your money, lets make a list of your assets and liabilities.

The Basic way to determine what is what is this...

Asset: is something that you own that makes you a profit.

Liability: is something that costs you money.

now based on what is an asset, that is where you put your money first.

One thing to remember, alot of what people believe is and asset is not, for instance a car that you make payments on is not an asset, it is a liability, because it depreciates and takes away from your budget and limits your buying/investing capital.

I am not saying to not pay rent because it is liability, but put your money first to the assets in your life, and then figure out how to ensure that your bills are paid.

Also you can look at what is truly needed in your life, for instance...

eating out, cable TV, satellite, a new car vs. a used one...
all of these are NOT needed, they can be nice, and certainly area drain on your wallet.

For example, do the math and see how much you can save and use better by temporarily not having those luxury's.

cable $50
new car payment $300
eating out 2 times /week $75

all of that multiplied by six months is $2,550.

now tell me that you cant do something productive with that!

Now for the record, I am NOT a financial planner, and in times like these I would not tell anyone if I were!

But that is an example of what I have done myself and what I have coached others to do as well.

I hope that some of this reaches you and helps you, if id does please let me know I would be pleased to hear from you and hear your story.