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1st payday under "debt plan" Please help

June 12th, 2012 at 03:15 pm

So this Friday will be the first payday since I decided to clean up my financial act. I need help guys do you all put your budget for each paycheck down on paper. Is it better to use a monthly calendar? Also how do you determine which debts to attack first?? and or how much to put towards them. I don't mean to sound clueless but as my profile will show I haven't been the best at money management in the past so i'm willing to learn.

6 Responses to “1st payday under "debt plan" Please help ”

  1. Looking Forward Says:

    Just writing it out on paper is a great way to start. Later you can do a spreadsheet or use financial software. Smile I pay off debt with the highest interest rate getting paid down first.

  2. Monkey Mama Says:

    "Write it down" is definitely just where you have to start.

    If you list your debts, you will get advice. Admittedly, conflicting advice. Usually would be either start with the small balances (to gain momentum and confidence) or start with the high-interest balances (to minimize fees and interest).

    How much can you put towards the debt? Have to start there. Then, have you heard of the snowball method? Once you pay off one debt, you add those payments to the next debt - and so it snowballs. So even if you start small, you can start to build some momentum as you pay them off.

  3. creditcardfree Says:

    You might look at this link on my blog explaining how we budget. It can work for any pay period frequency and any income.

  4. crazyliblady Says:

    I have tried numerous methods to keep track of my budget. I tried various spreadsheets that I downloaded or created myself, but that did not work because when I am out shopping and wondering if I can afford to buy something, I have not idea what else I need to allocate money for. I also tried keeping track of it in my gmail account calendar, but I had the same problem because I can't see it everywhere. What did work for me was to allocate for regular bills (mortgage, mowing, Netflix, etc.) in my check register as if the money is already spent. Then, when I need to actually write the check, I just add the check number. For any other items I want to allocate funds for, I write them on a post-it note and put it in my check register so that it is easy as a reminder to see if I happen to be out somewhere. Also, before I spend a single dime on groceries, clothes, going out to eat, or anything else, I make out the checks for all the bills to be paid out of my paycheck on the day before payday to make sure they get paid and the money does not get spent on something else. One of those "bills" is payments to my savings accounts for car replacement, home maintenance, professional savings, and regular savings. Also, take advantage of automatic deposit from your paycheck for savings deposits, retirement, etc. It is important to pay yourself first, but mostly, figure out what works for you and do it.

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