Self help in debt management: Developing a budget

If you're deep in debt, you're not alone. Families have been battling with debt for decades. It seems other people alway manage their money better than you do. But that's just on the surface. You don't know what kind of financial situation they are in. That's why the housing price just can't go up. Because people overextended themselves to levels beyond repair. 

While you still can, the first step toward taking control of your financial situation is to do a realistic assessment of how much money you take in and how much money you spend. List all your income sources and list all your mandatory expenses such as mortgages, car payment, insurance, loan repayments, and food. Make paying fixed expenses your priority. Don't worry about the extra expenses until you figure out how much you have left after the fixed payments. 

Entertainment, and fun expenses should come last on your budget. After the fixed expenses, you should try to put some money away for emergency. Start saving as soon as possible and even little bit helps. Then you can allocate the fun money for clothing, entertainment, and others. 

Make a budget with your spouse so everyone is on the same page. Even get the children involved if they are older. This is also a great way to teach them about personal finance.