Find Out Where You Are

You need to prepare where you are from what you have, I suggest making a list of all loans, credit cards, and bills. Pull them together with check registers, bank statements, receipts of purchases not made on credit card, credit card statements, and records of other expenses, including tax payments, medical, etc. All bills that you have. Include a list of all the people you have borrowed funds from, secured and unsecured. 

Once you have developed this intense gathering of information, you will simply have to take the expenses and break them down into Fixed Expenses, Variable Expenses, and Periodic Expenses.

Fixed Expenses: Expenses that are the same per month, such as rent, mortgage payments, etc.

Variable Expenses: These expenses change from month to month, and literally include all other expenses.

Periodic Expenses: Expenses that occur quarterly, yearly, which means they may be fixed or variable. Insurance premiums for example for a vehicle, a tuition fee, membership to an organization, etc.

Pouring Your Money Down The Drain?

What do I mean by this? Most offices have a coffee machine in the office, why buy coffee at Starbucks? You are going to go for a meeting, why does it have to always be at a coffee shop or in a restaurant, can you think of somewhere that you might not get stuck with another bill? One bill a week could add up, let’s say it’s a $30 lunch of some kind, its $120 a month! It really adds up, in a year that’s $1440. For one month, write down everything you pour money into one drip or drop at a time. Take a picture of it on your phone, store it, write it down, but do it. Also write down everything you buy with debit cards and credit cards, when you get the statement, look at the fees you are paying. Add them up as an average, and this will give you an idea of “how” you spend your money is affecting your personal bottom-line.

Make sure you include this in your expenses list below as you prepare the information. Put it down as a guessed amount under other expenses until you have actually been able to build a one month journal. 
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Write a list of all the credit cards you own include department store cards:

 
Credit Card 1

Company Name:
Balance Owing:
Monthly Payment:
Is this Debt Joint:
Months Behind:

Credit Card 2

Company Name:
Balance Owing:
Monthly Payment:
Is this Debt Joint:
Months Behind:

Credit Card 3

Company Name:
Balance Owing:
Monthly Payment:
Is this Debt Joint:
Months Behind:

Credit Card 4

Company Name:
Balance Owing:
Monthly Payment:
Is this Debt Joint:
Months Behind:

Credit Card 5

Company Name:
Balance Owing:
Monthly Payment:
Is this Debt Joint:
Months Behind:

Credit Card 6

Company Name:
Balance Owing:
Monthly Payment:
Is this Debt Joint:
Months Behind:

Credit Card 7

Company Name:
Balance Owing:
Monthly Payment:
Is this Debt Joint:
Months Behind:

Credit Card 8

Company Name:
Balance Owing:
Monthly Payment:
Is this Debt Joint:
Months Behind:

Credit Card 9

Company Name:
Balance Owing:
Monthly Payment:
Is this Debt Joint:
Months Behind: 
 ——————————————-

Write a list of all the loans you have:

 Loan 1

Name:
Balance Owing:
Monthly Payment:
Is this Debt Joint:
Months Behind:

Loan 2

Name:
Balance Owing:
Monthly Payment:
Is this Debt Joint:
Months Behind:

Loan 3

Name:
Balance Owing:
Monthly Payment:
Is this Debt Joint:
Months Behind:

Loan 4

Name:
Balance Owing:
Monthly Payment:
Is this Debt Joint:
Months Behind:

Loan 5

Name:
Balance Owing:
Monthly Payment:
Is this Debt Joint:
Months Behind:

Loan 6

Name:
Balance Owing:
Monthly Payment:
Is this Debt Joint:
Months Behind:

————————————————-

LIST YOUR EXPENSES

HOUSING EXPENSES
First Mortgage
Second Mortgage
Property Taxes
House Insurance                                                  
Rent/Condo Fees
Telephone (Land Line)
Cell Phone
Hydro
Water/Sewer
Heat:    
TV Cable Rental
Internet
Maintenance Contracts
Maintenance (Immediate Needs)
Other:     
Other:     
Subtotal:   

WORK EXPENSES
Transit – Applicant
Transit – Spouse
Applicant Lunches/Breaks
Spouse Lunches/Breaks
Daycare
Special Clothing
Other:     
Other:     
Subtotal:   
LIVING EXPENSES
Food
Personal Travel
Bank Fees
Gas Expenses (Car)
Car Payment
Clothing
Alimony and Support
Auto Insurance
Life Insurance
Medical/Doctor
Prescription Drugs
Dental
Laundry/Dry Cleaning
Pets
Other:     
Other:     
Subtotal:   
PERSONAL EXPENSES
Tobacco
Alcohol/Beverages
Recreation
Babysitter
Personal Grooming
Barber/Hairdresser
Gym/Other Memberships
Magazines/Newspapers
Gifts
Religious Donations
School Expenses
Donations
Allowances
Other:     
Other:     
Subtotal:   

TOTAL
Total Expenses:

LIST YOUR INCOME

PERSONAL INCOME
Employment Income
Stocks and Bonds
Investment Interest
Consulting
Alimony/Support Payments
Child Tax Credits

Royalties

Other:     
Other:     
Subtotal:   

TOTAL
Total Income:

What does it mean to consciously get out of debt?

The basic information you have filed out in the information above has given you an idea of how you got into debt, where you are, and how much money is needed to save and or make to get out of this situation. The idea that you consciously know where you are allows you to gain the greatest piece of knowledge you may ever gain, consciously documenting and knowing how to get out of debt. By consciously knowing how you got into debt will help you never get into debt again. This philosophy works for making money as well, as consciously knowing how you made $1, you can make $1 million.

Go To Kasu.ca today to check out how you can document some of the loans you have listed above, www.kasu.ca

Written by Ryan Gibson, ryan@publishknowledge.com