Assess-Plan-Act

I've been thinking about what it took to get me headed in the right direction toward a solid financial future. It pretty much boils down to the following:

Assess
Plan
Act

1. I had to assess just what our current financial situation was. How much money was coming in each month? How much was going out (more than was coming in)? How much were we saving (none, since more was going out than in)?

2. From the assessment I then had to make a plan. How was I going to turn it around? If I wanted us to create a secure financial situation, how was I going to accomplish this? There are two ways...ONE, increase the money coming in (take on new jobs), or TWO, decrease the amount of money going out (i.e. spend less money). For the fastest way to turn it around, I did a combination of both 1 & 2.

I mapped out a plan. What did we absolutely HAVE to spend money on? GROCERIES (although we could cut back some), GAS (but we could travel less), ELECTRIC (but we could monitor and use less, be resourceful), MORTGAGE (pretty much stays the same unless we take drastic measures and sell. No chance.)
Aside from what's listed above, the rest of our expenses were negotiable. They weren't NECESSARY expenses...CREDIT CARDS, CELL PHONES, CABLE, CAR PAYMENTS, STUDENT LOAN.
So, what to do? Well, with increased income, pay off things like the credit cards one at a time. Close the accounts, which eliminates the chance to charge up again and be stuck with another monthly minimum payment. Also, think about what expenses could be reduced of eliminated, even if only temporarily. I chose to cancel our cable service (about $50 a month), and did not re-install until we'd paid off our cars. There was some motivation for staying on track.

3. ACT! This is possibly the hardest part. I'd faced the truth, looked in the mirror and seen the reality of my family's financial situation. I had determined what could be done to change the course of our future. Now, all that was left was to get to work. Although it seemed like an overwhelming task, I am seeing the effects of my actions every day. Watching the balance get closer and closer to 0 on a credit card is exhilarating!

ASSESS-PLAN-ACT! Change your future today.