The first step to avoiding financial debt problems is to create and maintain a budget. It's not as intimidating as it sounds, don't worry. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay First of all, create a list of all your monthly income and also a list of your monthly expenses. When determining income, list all sources, including alimony, child support, side jobs, etc. When calculating your expenses, be sure to include housing, food, transportation, utilities, entertainment, etc. To get an accurate idea of ​​your actual expenses, sit down each night and write down your expenses—just be sure to save your receipts. Determine whether your income covers all your expenses. If the answer is no, you need to reduce some expenses. Adjust your expenses. If it's a small discrepancy, it could mean cutting back on some minor expenses like entertainment or your phone plan. If the deficit is larger, you may need to downsize your vehicle or living arrangements. If your income covers all your expenses, you may still want to trim some of the excess fat from your spending habits. This can free up extra money for things like vacations or college funds for your children. Also, consider whether you need to add new categories. Some often overlooked areas are debt reduction, emergency savings funds, and retirement savings. An emergency fund ensures that there is an adequate sum to cover any unforeseen events (car emergency, etc.), should they occur. This will eliminate the need to use credit which can quickly damage your budget. There are several benefits to sticking to your budget. First, most people have set financial goals that they would like to achieve in the future. Sometimes it can be a trip, a brand new car, or a college education. A budget can help people save money to make these goals a reality. Additionally, many people are crushed by heavy consumer debt. Without a disciplined spending pattern, it is virtually impossible to make much progress in debt reduction. A personal budget will provide the structure needed to begin eliminating these bloated account balances. Please note: this is just an example. Get a custom paper from our expert writers now. Get a Custom Essay If done correctly, a budget will allow a person to meet expenses, put money into savings, and pay off outstanding debts. Therefore, it is in everyone's best interest to create and implement a budget.