For many people debt is just another part of everyday life. Unfortunately it is also the number one reason so many people are struggling financially these days. And left unchecked it can lead financial hardship including foreclosure and bankruptcy. This makes it all the more surprising when those who complain about their debt and never having any money have no idea how much they really owe or how to get started fixing the problem.

When you add to the fact that most people who are having problems with debt also do not have strong money management skills it is easy to see why so many of us are having financial issues. That is the key issue for many people, poor money management and as odd as it may sound fixing both these problems can be as simple as setting forth some good personal budgeting strategies that start with little more then a notebook and a pencil.

Setting up a personal budget is the most important part of any debt payoff strategy because of two reasons. When you put your first budget together it shows you where your money has been going and you can take the appropriate action to stop the financial bleeding. Second it becomes your road map for where you want your money to go. There is a transition from your first budget that looks at your past money mistakes and subsequent budgets that are used to tell your money where to go and what to do before it ever hits your bank account.

In its simplest form your personal budget is nothing more then a listing of your income and your expenses. In most cases everyone knows how much they make every month but when it comes to expenses those who are struggling financially have no idea where all their money goes.

When figuring your expenses for the first time you want to make sure that you leave nothing out. Many expenses such as mortgage, rent, car payments, etc are fixed and do not change from month to month. For more variable expenses it is best to get at least a three month average. This works for things like groceries, gas, eating out, and anything else that you spend money on but aren't sure of exact amounts.

The important thing is to write it all down so that you can see exactly where the money has been going. This may somewhat painful the first time you look at your expenses as compared to your income but it is necessary if you ever want to gain back control of your finances.

Also be aware that the first few times you do make a budget it probably won't work quite as you had planned because "Life" happens. There are things that will mess the whole thing up but if you keep at it you will soon be able to plan for just about all of life's surprises using your personal budgeting strategies to create that financial plan.