0030 - Debt Related Queston: Bankruptcy Question # 0030

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QUESTION #0030:

I thought my bookkeeper was taking care of both my personal and business expenses. I found out that bills from the business suppliers are past due, and that the credit cards and line of credit are now maxed out. I need to get back on track or my suppliers won’t deal with me anymore, which will basically stop me from earning an income. Also need to take control of the personal expenses.



ANSWER:

In order to get personal spending under control, you need to track your spending (even a cup of coffee), and draft a budget for household/personal amounts. Even 2 weeks of tracking can give you an idea of where the monies are going. Red flag numbers to watch for are luxury or entertainment amounts, such as alcohol, movies, dinner out, drive through meals, and other such expenses. As a budgeting, or tracking, tool, there is an excel spreadsheet available for free on our website. This will outline what percentage of your income is spent on each type of expense, and is a useful visual tool.