Restructuring your finances is a simple exercise, possibly tedious exercise, but will put your mind at ease and give you confidence before you make that first move into investing.
The first thing we do in a restructure is to first document your current situation. Simply pull out a piece of paper or open up an excel file and start listing all your debt like this:
Chase Card $2,000
Bank of America $5,000
Citibank $1500
Then your expenses from this debt per month, like this:
Chase Card $77
Bank of America $125
Citibank $95
Phone $45
Cell Phone $69
Gas $200
etc…
We are just taking an inventory. Then list down your monthly income. Subtract your monthly income from your monthy expenses and you now have your current existing cash flow.
