Saturday, October 29, 2016

Finance Basics - Lesson 6 - Calculating Your Debt

Just a reminder:  I'm not an expert in Finance, please check with a certified professional regarding your own circumstances as not everything in these lessons may work for you.

How are you doing?

I'm off this week on vacation, but that doesn't mean there isn't work or budgeting involved.  Actually, I'm getting some things reorganized at home, so don't get your hopes up that I'm actually traveling anywhere.  Not yet.  That will come when I can afford it.

Hopefully you have started filling out the DOLP from David Bach, or the worksheet on listing your debts from the Family Finance workbook from The Church of Jesus Christ of Latter-day Saints.

This is a great start, but I thought I'd share with you a worksheet that I use on a monthly basis to track how I'm doing.  This is just something that I came up with for myself and I've found it very helpful in the last few years that I've been paying off debt.

This is what I call the Monthly Balances worksheet.

I pick a date around the end of each month and just simply list the total balances of everything that I have, from checking and savings to each of my debts.  This helps to give me a clear picture of where I'm at, where I need to improve, as well as to give myself a pat on the back for what I've accomplished.

I've also included spots where bills can creep up on you, like Property Taxes if you own a home, or insurance payments that may not occur on a monthly basis.  I find this is a great reminder to me to add these to my monthly budget when that month arrives for the bill.

As for paying off the debt, there are a few ways of doing this. has the best article that talks about this and identifies who would benefit from the different ways of paying off the debt.

Dave Ramsey's 7 Baby Steps explained:

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