Many people don’t know how to get around with finance and spending more than they earning and they dip their self into financial trouble, and have a lot of outstanding  balances that they don’t know how to pay off because interest rates is rock up and they have much more to give back than they borrow. People need to take care of their personal finances if they want to live debt free and here are few tips that they can follow up to became debt free
1. Prepare a Complete household budget – getting control of your personal finances is important to service unemployment. Use a household budget worksheet to see where you spend your money and where you can save. Do this as family project. Your budgeted expenses should include
- Fixed expenses – mortgage , rent, taxes, insurance, loans, installment payments credit card payments, child support and other fixed monthly payments and other financial obligation that are fixed each month such as gas and power bill payment or your internet and TVs bills, most of those bills is not change month to month so that why it call fixed expenses.
- Variable monthly expenses- food , gas, repairs, dues, prescriptions, recreation and utilities and child care
- Future expenses- income property tax and other outstanding debts
2. What your budget income should include?
• Income, Savings, Severance pay ( let say you have insurance than pay you severance each month for your emergency items) or some other financial aid from government, union strike assistance if your company is striking and your employer is paying you each week you should also add this as a budget, Unemployment compensation if you are not working and collecting unemployment, accrued vacation pay  if you have not take your vacation this year and you can change your vacation package for cash
• Refund from pension funds or if you collect social security so you should add those to your income budget
3. Third steps  is a List Assets
• Cash Value of insurance policies
• Prepaid burial or funeral policies
• Equity in your home the difference between the value of your home and the amount you owe on your home to banks
• Resale value of items you have fixed on tangible such as computer, domains, vehicles, board , RVs or other items that can be sale quick also stock, bonds, mutual funds and other financial securities that is trading on stock market can be liquid and count as assets
Next steps is to set priority  you should list all your expenses first and what is important for you and then make a complete list of creditors,  list should contain information such as name, address, and phone number of a contact person account number and total amount owed and payment schedule and amount and interest rates. If you have financial problems you should notify creditors that you have financial problem so creditor will working with you to find good resolution and help you get out of debt. They will lower your interest rates and make a better repayment option.