Income is hard-earned and precious in terms of future needs. Don’t think of it as ‘easy come easy go’ as many are willing to do. To ensure that you can manage your needs and stay out of debt, it is a good idea to put something aside each day of income. That next little one will grow over time and when emergencies arise it will be available. If, on the other hand, one has already fallen on hard times and is in debt as a result, then there is a way to manage it.

For this exercise you need a special book. It can be a workbook where you rule a few columns, or the more specialized ledger book bought from the store. On one page, you should write down all of your debts, including things like rent, expected cost of purchases, and so on. It doesn’t matter the amount or size at this stage. Make a total at the bottom.

On the opposite page write all your income. You will quickly see how much is missing between the two columns. Now here comes the hard part.

Subtract rent and expected purchases from the total expense. Now decide what are the most pressing bills you have to pay and the total of them. Call each company and offer a smaller payment per week or fortnightly for the next few months. Don’t overdo it and make sure this is possible.

Make a note of this commitment on the debit side and total the rental and purchase amounts and make sure you have covered them. Now take a little more, whatever you can afford, even if it’s as low as $5 or $10 and slip it into an envelope and keep it somewhere safe. Don’t spend a hundred unnecessarily. Forget coffee mugs and fancy items because they don’t fit the budget.

Get out of debt slowly and don’t buy anything you can’t pay for with cash. Cut out the credit card and use only cash to buy your products. The rent can be paid through the b-pay system is possible, along with invoices from other companies. This will save you time and effort when running.

This program works and all it takes is discipline and time to budget and stick to it. Over time, the little you set aside each day of income will give you the security to deal with unexpected obstacles as they arise. They may also be enough to provide an outlet or vacation from time to time. Under no circumstances relax in debt management because you will never regret it.

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