Before you can tackle debt, or even think about retirement and college funds, you have to develop a working budget that goes above living paycheck to paycheck and helps you plan for the future.
First you need to figure out your income and expenses. Income includes any form of take home pay to add to the family finances, this can include paychecks, part time income, commission checks, etc. Expenses include any money that goes out the door. Giving, saving, living expenses, variable expenses, and debt.
Remember that living on a budget isn't something you do for a few months or until one big bill is paid off. Living on a budget is a lifelong commitment. Before we go any further into the specifics in the next coming weeks, be sure you and your spouse are committed to this idea and are willing to do what ever works to get to a better point in your financial life. Start thinking about all of your debts and all of your income. Pray, meditate, and communicate. Then we will get down to the details.
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