"Finance is the art of passing money from hand to hand until it finally disappears."
Robert W. Sarnoff
Step 4. Start Building Your Plan
Let's take a moment to reflect on what you've accomplished so far. First, you have begun to get a handle on your monthly budget, you know what's coming in, what's going out, and you've begun to take steps to bring yourself current. You've got your finances at least partially organized, and hopefully you're starting to feel like you're getting your financial life under control. Good for you! Let's keep the momentum up now!
First of all, make sure you keep working
on the organization. Get a file cabinet, or a couple of shoe
boxes or whatever works for you and get rid of the clutter. Have
a place designated to put bills when they come in, so that when it's
time to pay them you know you have them all right there in front of
you without searching for them. Now is also a great time to
enforce some more discipline on the process. Get yourself a copy
of
Quicken , Money or some other software package that can help you manage your
finances. (One note here, the author has had the most personal
experience with
Quicken , so the features described here are known to exist in
Quicken and may or may not be included in other packages.)
Take the time to sit down and do the data entry that is required to get this software really loaded up with good information. Read the manuals if you have to, so that you're comfortable actually using the software. As you setup all of your credit card accounts, one of the things you'll be putting in is the annual percentage rate associated with the card. This is important because one of the most important things you're going to have to start working on is getting out from under your credit card debt. And most financial experts recommend paying off the debts that carry the highest interest rates first. Now understand that this first setup is going to take an investment in your time. Hopefully now that you've gathered and organized the paperwork associated with your financial situation, the time will be productive time, and remember, once you get the initial setup down, the ongoing maintenance should only take a little time on a regular basis. But please don't be afraid to invest a little time here. You are likely working 40 hours a week to earn your income, you shouldn't have a problem spending an hour or two a week making sure you know where that money is going.
When you've got everything entered, now you can begin to formulate a plan for making positive progress with your financial situation.
Additional Recommended Reading
Life After Divorce: Create a New Beginning
New Life after Divorce: The Promise of Hope beyond the Pain
