Over 23 Million South Africans are burdened with debt and more than half of them are in arrears on their debt repayments. At DebtBusters we understand that life happens and that you don’t always plan to get yourself into this situation. There are many reasons for why and how people become over-indebted, ranging from a […]
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.