Begin by listing all of your expenses. There are worksheets that can be downloaded from the internet that will make this easy. Look for places where you can eliminate expenses. Can you survive with a cheaper cable package or less cell phone minutes? If you are like many of us, you will find where you are spending money for things that you do not need. The next part of this step is keeping a journal of your variable spending. This means recording the money that you spend each day that is not part of your fixed expenses, such as; coffee and lunch that may be purchased each day. This journal will also show you where you have opportunities to cut back on your spending.

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