Organized Finances

With the current financial crisis in this country, everybody is looking for ways to understand their own financial situation a little better. Here are a few ways to organize your financial world.

• Actually write down all your debt. As Dr. Phil says, "you can't change what you don't acknowledge."
• Keep a list of your expenses for one month. Track every penny you spend. You'll be surprised.
• Make getting an emergency fund a priority. Most money experts having at least three months living expense money squirreled away.
• Start to pay off debt. Most financial planners advocate paying off the credit cards with the highest interest rate first. Dave Ramsey, the "debt snowball" guru recommends paying off the small debts first to get a psychological high from getting rid of some bills. Either way can work; pick one and do it.
• If you just can't meet the bills, call your creditors and explain your situation. Most people are willing to work with you if you show you honestly want to do the right thing. The absolute worst thing you can do is ignore the bills.