Now, you've totaled all of your bills and spending. This is just preliminary, so keep tracking all of these expenses. The longer you do so, the more accurate your totals will be.
But, now it's time to total your income so we can see exactly where you stand. This will be much easier than the expenses part of your budgeting. If you are like most of us, your income is fairly predictable, and there will be far fewer items. If your spouse is working, great. If you're receiving unemployment compensation, that will certainly help. If your family has any other income, even better.
If any income is weekly, multiply the net amount by 4.33 to get the monthly amount. If it is every two weeks, multiply that net income by 2.17. If it is twice-monthly, multiply that net income by 2.0. Monthly income, of course, will need no multiplier. If you have quarterly income, divide it by 3.0. Semi-annual income - divide by 6.0. And, yearly income would be divided by 12.0.
Total all of these (monthly) incomes. The total is what you have to live on each month, based on your family's current income. This cannot be exceeded. You cannot allow yourselves to get deeper in debt. That can be disastrous.
Now comes the moment of truth. Subtract your family's monthly expenditures (totaled in the previous items) from your total monthly income. If the result is zero or a positive value (i.e. the income is larger than the expenses), you can wipe the sweat off of your brow. You're in good shape for now. This doesn't mean that you are completely safe - unexpected things can always pop up - but at least you aren't in an emergency mode. However, if the result is negative (i.e. your income is less than your expenses), there is a lot of work ahead to get you solvent. Don't panic. We'll work on all of that in lists later down the line. This may get tougher, but it is possible. Don't give up! Let this soak in, and then we'll start on solutions.
Don't forget to make your required job search contacts this week.
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