How do I start a budget?

First, calculate your monthly income. This information is obtained from paycheck stubs, child support, alimony, brokerage statements, etc. Make a list of all of your creditors and payments that you make to them each month. Review your bank statements and / or your check register to see how much cash is going out each month and on what. Include all your monthly living expenses, rent/mortgage, food, utilities, child care, etc. Write down all of your expenditures, no matter how small, so that you have a record. This is especially important for cash transactions. You can then determine where your money is going, where your money was wasted, and, most importantly, does your monthly income exceed your monthly expenses. If not, examine your expenses and find areas that you can cut back or eliminate. Once you have accomplished this, you can begin to put more money toward paying off debt and, ultimately more money back in your pocket.

The first step is to prioritize your expenses. There are basically three categories of expenses: essential, non-essential, and discretionary. Essential expenses are those that are vital to your survival and must be paid first. These include rent/mortgage, utilities, food car, etc. Non-essential expenses include those that would have no impact on your survival. Discretionary expenses are those that can be included in either category depending on your particular situation.

Again, the first step is to prioritize. Place all of your bills into the three categories mentioned above, essential, non-essential and discretionary. Essential bills are those that must be paid when due to sustain your basic necessities or to avoid damaging your credit rating. Non-essential bills are those that would have no immediate impact on your life or credit report if paid late. These are unsecured debts and include medical, dental, utilities, newspaper subscriptions, etc. and, in some cases charge cards. These should be paid after all essential bills are paid. Discretionary bills are those that can be included in either category. For example charge cards could be essential or non-essential depending on what is being purchased on them and your current credit rating. For more information, contact us .

You can order your credit reports online. The websites for the three credit reporting bureaus are: Trans Union ( www.transunion.com ) Equifax ( www.equifax.com ) Experian ( www.experian.com ) To get the best picture of your credit complexion, you should order your report from all three credit reporting bureaus. You are entitled to one free credit report from each bureau each year.

Once you have obtained copies of your credit report from the three major credit reporting bureaus you can dispute any accounts on the report with the credit bureaus that are reporting it. Write a letter to each credit reporting bureau disputing the entries. Make sure to include the account numbers, your name, social security number, and address in the letter. Also include your reason for disputing the entries. You may also be able to dispute erroneous entries online. For additional help, contact us . The credit reporting agencies will begin an investigation with the creditors. The investigation must be completed within 30 days. Once the investigation is complete, the credit reporting agencies will send you an updated credit report. When you receive the updated report, make sure the items have been corrected. If not, contact the applicable agency again until it is resolved or contact us for more information.