Getting your financial house in order:
1. Know where you are.
a) Create a personal balance sheet. List all of your assets and liabilities. Subtract the two and this will tell you what your net worth is.
b) Create an income statement. List all fixed income and variable income. Then, list all fixed expenses and variable expenses. Subtract the two and this will tell you if you are cash flow positive or negative.
2. Determine where you want to go.
a) Have a financial plan written for you to determine how much money you need for retirement. This will tell you what you need to save and the rates of return you must attain.
3. Get out of debt.
a) List every debt you have. Write down the amount of the debt, the interest rate you are paying and the monthly payment. Then, establish a goal as to when you want it paid off and how you will do it.
4. Increase your income.
a) Evaluate your income sources. If you need more income, determine how you will do it. Maybe a new career or start a part time business.
5. Begin using money management software to balance your check book.