I never seem to have enough money left over each month to cover all of my expenses.  On paper, my financial situation looks great, but in reality, I don’t have an adequate amount of money to pay all my bills.  My credit card debt is also high because I can’t afford to pay it down.  What should I do?

You made an interesting comment about your financial situation looking good on paper.  This is a problem for many individuals.  What often happens is that they don’t budget properly and spend money on small items that add up each month.  The first thing I would recommend that you do is create a budget and allocate your money accordingly.  Write down all the debts and payments you are making.  Include all your living expenses, (i.e. grocery, entertainment, etc.).  Also, write down the amount of money you have coming in each month. This will give you a good understanding of where you stand financially.

Keep a journal of all the expenditures you make in a month to see where your money may be wasted.  Such expenditures would include coffee drinks, fast food, and other such items.  Once you see exactly where your money is going, you can begin to save and put more money toward paying off your bills.
 
If you still find yourself coming up short each month, look for areas that you can cut back on your spending.  Items such as cable, Internet, gym memberships and so on are luxuries.  It is important for you to pay the necessities first such as your house payment, utilities and food.
 
Written By: Hal & Deborah McNaughton