I talk about budgeting until I am sick of saying it but the only way to begin to change your financial situation is by starting with a strong foundation. Imagine trying to stand on a blow up raft in the water. The more you struggle and move around, the worse it gets. Now picture a pontoon boat. I am not sure anything but an act of God could turn it over, all four corners are stable and it takes the waves in stride. So I am going to touch this again.

List all living expenses, payments, and incidental expenses. Be honest, you know how much money you spend on average. Next, list all sources of income. Total each column. How do things look? I pray that your income total is higher than your expenses but unfortunately for many people that is not the case. Living beyond our means is a very dangerous game to play. At some point the balance on the credit cards will be maxed and even though you may be able to get new ones now, eventually they start to look at your debt to income ratio and will quit extending credit.

If you are in a position that you are living beyond your means, stop now. Using a credit card to cover basic expenses is going to get you in deep financial trouble fast. Expand your list of expenses, see where you can cut corners. Get rid of the cable, trim back your cell phone, switch to paying cash for everything. Every one of us has the ability to cut back on expenses. It may seem like a sacrifice today but the future will bring about the change and freedom that you desire.