Seasons come and seasons go. Spring is here and it’s time for a fresh start for your finances. You know that old, old debt that you have almost forgotten about but still lingers in the back of your mind? Well, it is important to know that you may not have to pay that debt back anymore. This is due to a legal clause known as prescribed debt.
28 November 2012
Comparing your spending to your income.
Here comes the real measure of the state of your finances: Figuring out how your total spending compares to your total household income. You may be in for a shock. Are you ready?
Gathering the necessary materials:
To complete this exercise, you need a pad of paper, a pen or pencil, and a calculator. You also need the following financial information:
• Check registers
• Bank statements
• Receipts for major purchases not made with a credit card
• Credit card expense records for the past 12 months
You also need records of your income for the past 12 months, such as pay slips and deposit slips or direct deposit information. If you’re self employed, you need your business records.
Your spouse or partner should gather up the same information because the goal of this exercise is to give you as complete a picture as possible of how your household spending compares to your household income.