Creating a budget

Yes, a written budget. I have a good start on the budget, but there are a few expenses that will have to be updated as I go. Mainly expenses for the two kids, food/clothing etc.

While a budget should be considered a living document, meant to change as needed, actually doing it is quite a step in itself.

Start by writing down your net take home pay (cancel any 401K or stock purchase plan contributions while you are paying down your debt).

The next obvious step is document your fixed expenses, house payment, car payment, etc. Follow those up with things like utilities and other items you pay for monthly. Then factor in your other expenses.