Managing your finances can be difficult. Many people have no clue what they are spending their money on, or where their money is going to. To get started on your budget, get your priorities straight. Food will be number one on the list. A heart-breakingly large number of Americans are undernourished today, and food is basic sustenance that you need to survive and preserve your well being. Keep in mind though that even though food is extremely important, it is financially wise to avoid eating meals out all of the time, and looking for deals at the supermarket can be helpful.

Shelter is a necessity as well, so put your mortgage or rent second. The utility company comes next, because you need to have heat in the winter and lights on at your place. If you use a phone that will probably come next, and transportation to work is key so make that car payment. If you are a parent that owes child support, be sure to pay thisnot only because it’s part of being a good person and a good parent, but because if you don’t pay you can get thrown in jail. And finally, going to see the doctor and getting your health checked, especially if you have no insurance requires that you pay a bill here and there.

So these are your personal priorities. Make sure that you have you taken care of and move on. Unfortunately, the government comes second. If you have the cash to pay your taxes on the spot, the Internal Revenue Service will generally work with you to create a schedule of payments. But always file your taxes when they are due. Not filing may end up in interest and penalties of up to twenty five percent of the money that you already owe.

Student loans are also important. Most of these are backed by the government. That means that, like back taxes, the government can come after these loans in a way that other creditors can’t. If you are late in paying your student loans or back taxes, the government can garnish your wages and take your tax refunds, and in some cases, your Social Security benefits. Fortunately for us, Uncle Sam also has a number of resources for people who can’t afford to make their student loan payments, including stretching out the amount (and therefore reducing) the amount you owe monthly or putting them on hold if you’re out of work. Bear in mind though, that the longer you take to pay off the loans, the more interest will gather, so tighten your belt and pay as much as you can.

All of your other debts, department store debts, payments for furniture and appliances, and bank-card debt can be placed on the back-burner for now. This doesn’t mean you shouldn’t pay them, but if you are in a place where you know that every creditor is not going to get paid, these are the ones that you can put on hold. It is a good thing to know how much debt you have, and where your money needs to go, and now you need to figure out where it is going now. Think about how much money you may spend on fast food, cups of coffee or cigarettes. Try to develop the will power to get a budget book and jot down every cent that you spend.

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