Where do I start? -- Part I - The Budget

Ok, so you pulled out your bills and went into shock. After you regained consciousness, you're scared, frustrated, or maybe just really hacked off. You're overwhelmed. It's OK. Sit down, relax, and let's get started.

First, You can do this! Second - Getting out of debt will be hard.

I'm not going to lie. It's pretty easy to swim in debt, but no one likes to get out of the pool. But let's take it slow - we need a plan. It's time for a budget. I know - I said the "B" word. But it's not as hard as you think. Grab a paper and a pen - I'm not asking you to be an accountant here! If you're married, get your spouse involved.

On the left side of your paper list the total household income. This is everything coming in. No secret stashes, no lying here. You only hurt yourself if you do.

On the right you list your expenses. Start with the necessities first, then list your debts from smallest to largest. The order of the listing is going to be the order these get paid. Example categories are Food, Shelter, Clothing, Gas, Car Payment, Credit Card #1 , etc. Also include a category for yourself - Entertainment or fun money. If you don't reward yourself, you encourage failure. Just make sure you put it in the budget.

Start totaling. If your expenses outweigh your income, you're going to have to trim something, or someone's not getting paid. Make sure your categories aren't out of hand. If you're single - $300 is way too much for food. On the other hand, a family of four will need much more than that. So budget accordingly.

That's it. Now all you do is tweak your categories and see where you can save. I'll post some tips for trimming the budget in the next article.