Make a Budget
Figuring out your budget is the first—and possibly the most important—step in getting your finances in order.
In an era when just about everybody is worried about losing their job, nearly half of us are living paycheck-to-paycheck. Now's the time to grit your teeth, slim down your budget, and start living within your means.
Start by filling in your monthly income and monthly expenses. Remember, it's monthly, so for items like health club memberships or bonuses, which are generally once-a-year payments, divide by twelve. Credit card charges should be split up according to whatever you spent the money on (groceries, clothes, etc.), but interest and finance charges have their own category.
Then just press "Calculate Results" to get your total income (after tax), total expenses, and cash flow, which is simply your income minus expenses.
If your cash flow is very low—or in the negative numbers—you'll need to either earn more or start prioritizing. (It might not be as hard as you think: take a peek at our Money Makeover couple's budget.)
Then, for fun, subtract your liabilities (all that you owe) from your assets (all that you own) and find out your net worth.