Debt:  a means of using future purchasing power in the present before a summation has been earned. (wikipedia)

I have been thinking for a year now (at the very least) that I have some real problems with money. I know that the story is not a new one. You get your paycheck and it’s gone before the next one comes. I believe they call this living paycheck to paycheck and I certainly do it. I am not quite sure what my problem is although I know that I have more debt than I have income. What that does is that you make the minimum payments on everything until you have absolutely no chance of ever getting out of debt. I even bought a program last year on Ebay to get myself out of debt. A year later after thinking about it on and off, it’s finally time to just get off my rear end and do it.

What brought me to this point and what makes me think that I will be able to really make it work this time? I have a 6 year old son that I want to put into a private school. I have step-children that I want to have a better chance at life when they graduate college and how can they do it if I can’t and I am the “adult” here. On top of this, I met a lovely woman that has no debt and lives just fine. And, I read a book called the Automatic Millionaire. Already stuff I kind of knew yet didn’t. Granted these folks started in their 20′s and I just turned 36 this month. I can still do it. They too have no debt, no credit cards (if I remember correctly).

Still, the biggest kick in the pants is that I found out that I have been paying over $800 a year in interest on a home equity loan that is now more than I borrowed at least 3 years ago. Sure am glad I bought that television on sale!

What’s next?

First, I wrote  down everything that I owe and the payments due each month. Check.

Then, since I do not make the same amount each month, I wrote down what I made for the last three months and divided by three. I think that’s the smartest thing to do and make a budget off of that. I know it doesn’t sound glamorous but until I can get my spending under control, I must do this.

Next, I have to find a program or someone that knows what percentage one should spend on each part of the pie, such as groceries, and find where I can cut expenses like Blockbuster monthly rentals….

I will continue to work on this and keep you up to date on how I do. Do you have any advise for me? What are your resolutions for 2010?