Living paycheck-to-paycheck with no financial plan, even if you are not getting out of debt, does not allow you the financial freedom you need to live your life the way you want.
The absolute first thing you have to do when you are taking control of your finances is making a budget. That’s right- a BUDGET. A personal budget. You need one. You need one written down. Not only that- but it needs to be a budget that WORKS. A budget that only deals with the money you actually have and not the money you think you have or the money you wish you have.
I don’t care where you spend your money. You don’t need to know where you spend your money. All you need to know is that you did not spend more money than you should have. The only way to actually do that is to have a budget that tells you that.
Definition of a Budget: knowing where your money needs to go and then putting the money there That means that you need to know where your money is supposed to be before making any decisions and certainly before making any corrections.