No More Mortgage has seen uncounted examples over the years that show that not having a budget can be a large contributor to building up additional debt.

So we would ask you, what does your budget look like?

If you're like most people your budget is non existent or something intangible you keep in the back of your mind somewhere next to last year's resolutions.

Well, it's time to bring it out of storage. You really need to start looking at your personal budget as one of the most important personal finance tools for survival today as well as building the future retirement income you will need later.

One of the most pressing issues we face today is the amount of debt we carry. Among the obvious problems that comes with debt is how it robs you of your future. The money going towards your debt today could be building up in your retirement account if it weren't for that pesky debt. With the hits we've taken to our retirement accounts the last few years many of us just don't have the same nest egg building up that we did.

Budgeting is one of the main tools that will get you moving forward and help you achieve some gains against your debt while relieving some stress at the same time. Creating a budget is one of the first steps you need to take to get your hands around your personal finances and make a financial plan with an end goal in mind.

Before you start to create or update an old budget, do this exercise and you'll often find some quick ways to start saving money.

Get your last bank statement and go through it line by line. Next to each line, write down what was bought. If you don't know, write down "don't know where my money went". Then go back and total up similar expense together so you can see how much you really spent in each area. Whether it's groceries, clothes, entertainment, coffee or lunches, group them and total it up. When your done take a look at what you spent your money on.

Your going to find areas where you could cut back your spending or eliminate it altogether. You may also realize there is an area like cable or cell phone usage where you  can lower your plan and save a little bit more.

The point is, until you analyze it you won't know. And when it comes to your money you need to know where it's all going. Times are tough and we're living in a different environment than we did just a few years ago.

No More Mortgage has been helping our clients get on track to becoming debt free for over a decade. We can't tell you enough how important it is to have a plan and a budget to follow.

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