Personal Finance and Investing

based on your fixed expenses and your discretionary spending. Also your income from all sources.

Put it on a spreadsheet and track it weekly. Basically it becomes a cash flow statement. You replace your estimate figures with real amounts each week.

The reason for this is that you can’t make proper financial decisions until you know exactly what you earn and what you spend and whether you spend more than you earn or do you have money left over each week.

To get out of debt you have to do three things. Stop using credit and pay off what you owe and spend less than you earn. If you can consolidate debt and pay less interest you have more to use to pay down debt. One way of doing this is to use credit cards that let you transfer balances at a lower rate than you are paying.



Only if you have money left over can you do that.

If so you don’t need credit and you can use the extra to pay down debt.