Increase Income, Reduce expenses

For the last 6 months or the last 2 quarters of the year I have been able to increase my income and reduce my expenses. I took advantage of overtime offered at my J.O.B. and sold some unused items I had laying around. It wasn't a dramatic increase in income but it was something. My expenses were also lower relative to my income but still not were I want them to be. I'll write more on what I'm doing to increase my income.

Tracking Income and Expenses

Recording income and expenses has always been a chore for me. The way I record my income and expenses is with a financial software called Quicken. With Quicken all of my income and expenses can be seen by a click of a mouse. But be aware of the "junk in junk out" saying. You must be able to track your everyday expenses accurately for the information to be useful. The way I do this is by using my debit card on all my transactions. It is accurate, saves time and you will always know where all of your hard earned money went.

Average Family Income

I heard today that the average family income is $35,000 to $40,000 a year. My current job doesn't pay me the average. So what can I do about it. Should I just give up and go to the welfare office. Or should I get motivated and look for ways to make more money. I think the latter is the appropriate step for me. Let's see I make around 14,208 a year my spouse makes about the same let's say $14,200, combined income is $28,400. That is well below the average-no wonder I need a budget. Not to worry though, I have some side work in mind.

Money rule #1 Stop spending

The first thing I did to start my budget was to be able to admit that I needed one. It is more about changing my habits than about saving money. I have to stop spending money on stuff that I don't need. I almost broke this rule when co-worker offered me to buy a pocket pc. I was really tempted but I remembered my rule - stop spending on unnecessary stuff.

Overview of Budget

I must admit that this is not my first time in attempting to follow a budget. I think I have started and quit about five times. I know this time it will be different. There is steady income coming in and I am more focus on my goal.

Budget Launch

Today I start my blog. I am new to blogging but was compelled to share my experience with the blogging community.
I have just started to live on a budget and let me tell you, it is tougher than I thought. I will be sharing my ups and downs as I pursue my goal to be Independant of debt. Who knows, someone might even get a few ideas from my blog.