Let's Get Started -Where Is the Money Going?

It's important that you stay on top of your finances. You should know how much money you are bringing in every payday and where exactly it goes.

It's surprising how many people aren't aware of how much tax or other costs are being withheld from their paychecks. Take the time to sit down and view your pay stub! See how much tax is being withheld, how much do your insurance costs add up to? Do you have money deducted from your check for your 401k? All this information should be on your paystub.

If you are married, both spouses should be "in the know". Why should one spouse be responsible for paying all the expenses? You don't get into debt alone. You need to sit down and take a hard look at where the money goes.

The key is to catch things before they spin out of control.

You should have created your list with the 2 categories.

#1 Category was for your regular living expenses. Items like Rent/Mortgage, Electric, Gas, Water, Sewage, Garbage, Food and Fuel & Phone. These are items you will have in that list. These are expense that cannot be ignored. You need them to live.

#2 Category are luxury expenses like cell phones, internet access, credit cards etc.

Category #1 will never go away but you can do your best to control those expenses. Aside from Rent/Mortgage the other expenses depend on your useage. If your house it always lit up like a church you need to start shutting the lights off. Generally summer months you have high electric bills due to a/c, fans etc. Winter the gas bill is higher for heating your home (unless of course you have electric heat. A/c doesn't need to be set at 68. Your house should not be a freezer. Adjust your thermostat accordingly. Same thing goes in the winter. You want to be warm but it should not feel like a tropical paradise! In most places the sewage bill is based on your water bill. Everyone needs a bath or shower but each person doesn't need to run the hot water tank out in 1 use. Limit shower time. Get in and get washed and GET OUT. My husband use to run the water for 10 minutes while he saved before getting the shower! GRRR Not only did that kill the water bill but the gas bill too as we have a gas hot water heater. Here are some links for getting those electric and gas bills down. The others I will tackle over the next few days EnergySavers & Consumer Energy Center