Back to Basics Part One: Getting it together

Ok so the last couple of years have had a lot of ups and downs and now you’re looking for ways to get your financial house in order.
First it is important to understand that you’re not going to fix something in a week that you have gotten your self into over years. Once you except that this is a process that’s like going to the gym and is going to take regular effort on your part it get easier .

First its important to know where you are so take an inventory of all your Assets and Liabilities another words figure out what you owe (bills and debts) and what you own (property ,stocks ,bonds and so on) .It is very important to figure out exactly what you owe and what your monthly payments are . Next you need to figure out a budget, a real budget .Not an “about” budget. Important ; if you have not set up an emergency fund of at least $1000 you need to get this set up and tosses in savings ASAP. For most people anywhere from 6 weeks to 3 months of money to pay bills in reserve (savings accounts) is about right.Most of you need to start out by paying off all your credit cards and miscellaneous debt ,paying off your smallest debt to your largest .Once you pay down one you take all the money your using to pay down that debt and add it to the next creating a snow ball effect. While you’re doing this if it available you should be maximizing out your 401K options many companies offer matching contributions, this is a painless way to increase your savings. For most people it takes any were from 18 months to 2 years to make this happen. too be continued.....