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Spending tomorrow's money today. That's what debt is all about. You have auto loans spanning seven years, mortgage payments up to 30 years, and credit cards with payments for the clothes your kid's may have already outgrown. And, in today's economy, tomorrow's money is harder to come by.

The first step is to face your debt. Using a spreadsheet software, or piece of paper, list your monthly expense. It is easiest if you use columns. Use one column for the name of the expense, like house payment, gas, electric, car, insurance, credit cad, etc. Be sure to include groceries, gas, prescription co-payments, school lunches, whatever you spend. In the next column, list the dye of debt, household, installment loans, credit card, utilities and so on. Then list the monthly amount of the expense. Add these up. Next, calculate your monthly income after tax. If you get paid weekly, times the amounts by 52 and divide by 12; if paid twice monthly, times by 26 and divide by 12. Subtract your total monthly expenses from the monthly income. This is the cash you have left.

Next, add a column for the balance left on the installment loans, credit cards, auto loans and mortgage. Choose the lowest balance remaining on any of these, and begin paying ten or more dollars extra a month until it is paid off. Continue to make the monthly payments on the remaining balances. As each balance is paid off, move to the next highest debt. But do not use all the cash you have left over each month.

Let's say you have budgeted your monthly expenses correctly, and you have fifty dollars a month left over. After paying the additional ten, take the remaining forty and put it into a savings account. The savings account, however small, will grow, and will become your next "credit card".

If your monthly expenses are more than your income, review the list and realistically decide where you can cut back. Taking lunches is the easiest way to save fie to ten dollars a day. Some pharmacies have savings programs, where you can get a 60-day supply of a generic prescription for ten dollars, and additional points when you buy their brands. You can use these points for other purchases. When grocery shopping, you may want to switch to store brands, or use a discount store for canned goods and other staples. This can save up to $100.00 a month, depending on the products you purchase. Try to plan dinners do that you can eliminate the costs of frozen entre's, or buy them in bulk. You can save money on children's clothing

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