Given our troubled economy, it's even more important now than ever to carefully manage our finances and reduce debt. Many people today not only spend more than their incomes, or even don't know what they or their spouses are really spending. We are living in a time of high unemployment, and working families ending up homeless or at a food bank because they aren't able to make ends meet. I'm not trying to scare anyone. I just want you to have a true shot of today's reality so you can plan for it. I fully believe in hoping (and praying) for the best and preparing for the worse. Just as you have to prepare and plan for a hurricane that is headed your way, we can prepare for a troubled economy and other emergencies that may head our way. As long as you have done all the planning and preparing possible, you can relax and enjoy life.

Below are the 6 steps we will take to manage our finances:

1. Analyze current income, expenses, savings, and debt
2. Reduce reoccurring expenses
3. Finalize and balance your household budget
4. Increase income, as needed
5. Reduce / eliminate debt
6. Save for emergencies and future needs

After you analyze and budget your financial spending, additional frugal ideas can be used to increase your savings. By living frugal, you can make the most of enjoying life by spending only where it means the most to you.