1) Go through your checking account, ATM card statements and credit card statements for at least three months and make a list of all the items you spend your money on each month. Put everything on this list, because it will be the start of your financial plan. If you see $100 coming out of the  cash machine every week, make a note of that expense as well. Once you determine your spending pattern for three months, make a list of your average expenses by category. For example, if you see you are eating out a lot, add up all expenses from eating out for the three months to get the total. Divide this total by three to get your average monthly expense for eating out. Use this number as your monthly budget number for eating out. Whether it is $100 or $300, write it down.   Do this for all categories. Once you see where your money is being spent, you can start getting a feel for how much you need each month.

 2) Once you have added and averaged the monthly numbers for all categories and have put together a monthly budget, take a hard look at this budget and ask yourself if there is any excess spending. Are there things you can certainly do without? Make a list of those things as well.

 3) Total these expenses and subtract them from your original budget, and this is the amount of income you must bring into your household every month. If you do not bring in this amount  every month, then you must be living off credit cards, charging items but not able to pay for them in full every month. This is a costly mistake that will eventually explode. 

 4) Immediately stop spending more than you are bringing in each month. If you feel you do not have enough money to make it even if you cut out all the frills and waste in your spending, it is time to look at other income sources.

 5) Do you have the time to work a part-time job or start a business? With what is happening in our economy, having your foot in the door of another company may not be a bad option. This provides the opportunity to make more money and the possibility of another job if your employer has layoffs. M next blog session will tell you how to start a business..