On the following page you will find an Assessment page that will assist you in ascertaining your financial position.

Pointers:

• Increase by say 5% what you are currently paying for rent, groceries, fuel.
• Do a parallel exercise to check if you can reduce household living expenses – but then you will have to stick to it.
• Check if you are paying monies out on items or services you would like to keep but don’t need.
• Remember the children and allow for school outings, school books and uniforms and entertainment;
• If you give to your church or foster an overseas child make sure the costs are included;
• Clothing wears out and needs to be replenished from time to time – allow for it.
• Hairdressing is a necessity for all individuals – make an allowance;
• If you indulge in tobacco and/or alcohol check if you can reduce the cost but remember to allow for the expense realistically;
• You must allow for vehicle registration, insurances and maintenance, if you own a car, motor bike or caravan;
• Likewise life assurance, private health insurance & income protection insurance etc;
• If you own property you must allow for property maintenance, insurances, rates and body corporate fees;

If necessary increase expenses that you would expect to rise in the next 6 months – do not decrease your known expenses simply to arrive at an answer you would like to arrive at.

Now, you need to search those drawers and cabinets and extract all of your accounts and credit card statements including any accounts that are overdue, including taxation.

Arrive at the household income first by obtaining:

1. Pay slips;
2. Benefit statements;
3. Receipts for board
4. Other income from investments, child support or maintenance

Do not include anticipated bonuses unless they are guaranteed to be received with regularity and certainty…