Nothing can beat that feeling of excitement when your debt counselling process is nearing the end. You are eagerly anticipating receiving your clearance certificate, the proof that you are finally free of your debt! This is new territory for you, so take some time to understand what happens after you receive your clearance certificate… What […]
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.