How a Stay At Home Mom Owing Over $24,000. Became Debt Free

Who decides how you live your life? Do you, or your credit card bills? More and more people are finding their debt ruling their lives. What about you? If this sounds all too familiar, don't worry. If I could get out of debt, you can too... I starred at my credit card balance in disbelief. I could not believe I owed that much! How was it possible? I knew where it began. When my children were babies, money was very tight. Adjusting to living on one income was very difficult. One day I decided I needed to organize their play area to get a handle on all their toys. My husband had found some bookshelves that would work for us. The only problem was we did not have enough to pay for them without putting them on our credit card. We thought we would be able to pay it back over the next several months. Only, things never work out the way you planned. So of course, before we were able to pay that off, something else came along. We got used to putting on our credit card. We did not stop to worry or think about it. After all, when the kids went back to school, I would be going back to work. But as I looked at my bill, I knew it was time to do something about this. Not only were we in debt, we were not saving any money for the future. After reading book after book after finances, I came up with a plan that worked for me and can work for you as well. First, review you current financial situation. Make a list of all your assets, the things you own, such as cash, home, savings, bonds, stock, 401K's. Then another list of what you owe, like credit cards, mortgages, and car loans. After you total your assets and debts, subtract the difference. Hopefully you should have a positive net worth. If not don't get too upset. This is something you can change. The Most Important Step Track what you are spending your money on for the next 30 days. Write down every bill that you pay. Keep a small piece of paper with you at all times to write down every purchase you make and what the purchase was for. At the end of the day, or when you get home, add that information to a master list at home. You will be surprised what you learn. After I had tracked my expenses, I learned I was spending a lot more than I realized on vitamins and supplements. Usually, when I ran out, I went to my local health food store to get what I needed. After doing a little research, I now order the bulk of my supplements from the internet. I save between 33 and 50 percent off of what I was previously paying for the same items. Including shipping! Now that you know your financial situation, you will have a better understanding of what you need to do. Evaluate where you are financially and where you want to go. Make any necessary adjustments or imbalances. Your plan could include one, two, or three parts. Remember it's Your plan.

• A budget or spending plan.
• Debt Management Plan.
• Plans to increase your income.
• Wealth building plan.

I know, most people hate the “b” word. But realistically, you need either a budget or a spending plan otherwise you will end up wasting your resources. It's amazing how quickly the "little expenses" add up. Even if you could easily increase your income, if you don't plan how you will spend your money, you will find your spending can quickly catch up with your increase in income. These are steps and plans I made to get out of debt. They will work for you too. Regardless of how you make your plan, either simple or complex, just make sure it is a plan you will actually be able to stick with and make progress.