The Foundation

Having a solid foundation for anything you are establishing is a must to ensure it will be stable and sturdy for years to come.  Building a structure like a house has many components, but you start with the foundation.  Well, you can think of your finances like a house, a financial house to be exact, that will provide you with a secure financial future.  So to get a solid foundation, you must first understand where you are starting.  To know that, you need to identify all of your debt.  You can use many tools to do this, but to keep it simple right now, get out a sheet of paper and list everything you pay daily, weekly, monthly, or yearly.  It is a headache to do, but trust me, you will thank me later once you have it documented.  I made a list below to help jog your memory but note this is not a complete list, just something to help guide you.  Also, this list is in alphabetical order and not by importance.

Coming and Going

Okay, now that you know what your debt is going out of your account each month, let's figure out what money you have coming in each month.  For most people, this is simply because they usually only have one source of income.  So just as above, create a list of income sources that you may have.  This is not an inclusive list either, but hopefully, you can use it as a guide.

What's the Damage?

Now that you have your monthly debt and your money income.  HOPEFULLY, when you take your monthly payment and subtract your monthly debt, you have some money left over.  I know that some people looking at this may think that's a joke but believe it or not, most people are living paycheck to paycheck and are not capable of paying off their debt each money.  Some people have to choose between the medicine they need or food for the family.  If you are not one of those people, count yourself as BLESSED even if you feel overwhelmed in your current situation.  That said, if you are living paycheck to paycheck, you at least know exactly what the damage is now.  That's the first step to truly understanding your situation vs. just knowing there is more month than money left over.  The next step is to see what can be done to relieve some of that tension.  I'll list some immediate things that are obvious to some people but worth repeating.

Things to do Now?

• Cancel unnecessary subscriptions for magazines, gym memberships, online services, cable television, etc.  I know somebody will be cringing at the thought of not having cable or satellite television, but get over it!  Once you are debt-free and money flows more freely, you can get it back, but you only need the necessities right now; cable television is not one of them.  Go old school, get an antenna, and watch basic television if it's that big of a deal to have a tv.  You can watch almost anything you want on your smartphone these days, and with how we spend money, I'm sure you have a smartphone.
• Reduce the monthly payment you have on your cell phone.  Paying $150 to $200+ a month on a cellphone is CRAZY.  What the heck are you paying that for?  There are plans for less than $50 bucks a month if you search for them.  I understand if you are in a rural area and don't have a choice for certain plans, but most people are not in those situations.  Do your research, and don't be afraid to get lesser-known companies because you already know what Verizon and AT&T will charge you.  There are great plans at Walmart if you just check them out.  Also, check the discounts your company may offer.  PERKS AT WORK offers all types of great discounts.
• Car Pool or public transportation saves on car parking fees or extreme gas prices.  I'm sure there are people you know that are trying to save money just like you.  You can partner with them and drive for one week, and they can drive the next week.  Splitting the cost of the fees each week can add up, and if you save in other ways, it can go a long way.
• Couponing is still an active practice, and many coupons can be found on the internet; better yet, go and get the coupons from your neighbors or post a flyer in the breakroom where you work, letting people know you collect coupons.  You'll be surprised at the people who will bring them for you.  Also, if you shop online, you want to add the HONEY google chrome extension as it will find and automatically apply coupon codes for you!
• Curb your eating out or that Starbucks coffee for a while.  It may not seem like a lot, but any little bit helps even if you cut out one a week, which could be an extra $780.00 a year.  That's a coffee at $5.00 and a meal at $10.00, so a total of $15.00 a week for 52 weeks.  Yes, just cutting out those two items could pay off a few debts for some people.

Now I know there will be some of you that have already cut those items out and are looking for more.  Well, that's what I'm here for, and will share with you some of the other things I did to save money and MAKE money.  You will get to the point where nothing else can be trimmed down, and you just need to have more income coming in.  Check out my youtube channel to watch the videos I created about each workstream I have tried and the successful ones that I still maintain.  I hope you find something that helps you out!