A budget will help you understand your income, expenses, and debt. You need to know how much money is going in and where your money is going. This is the first and necessary steps in order to create a financial plan to achieve debt freedom.
Here’s what you’ll need to do:
- Calculate your income
- List and calculate your monthly expenses (housing, utilities, subscription services, food, etc)
- Calculate your debt and monthly debt payments (separate base on mortgage, credit cards, secured loans like a car note, student loans, and any other types of credit)