Looking at your situation

In my spare time I used to create an income statement and networth statement at the end of the year and this gave me a good idea of where we were financially. My wife and I also got a chance to see where the holes where and what we could do to fix them.

The income statement lists your income and expenses and what you might have left over after you subtract your income from your expenses. Once I did this I began to see where our money was going. Now the best part is I can decide how I want to change my behavior to improve my financial life.

This doesn't mean that you never spend any money but what it does mean is that you get more selective. Without the income statement it is harder to plan and make decisions on allocating money.

To get from point A to point B you need directions or a plan. But you have to objectively look at your situation first. We where like everybody else, we had more going out than coming in. Solving this problem is the first step to getting on the right track.