A really important step to taking your debt in hand is to sit down and create your Statement of Affairs (SOA).
Statement of Affairs (SOA) and Why You Need One!
What is a Statement of Affairs?
Simply put, a Statement of Affairs is a list of all your incomings and all your outgoings. This will allow you to see exactly how much money you have coming in each month and how much you are spending. If you have more money leaving your hands than entering, this will be the cause of your debt.
How does it work?
You simply input your income and outgoings into the spreadsheet and the formulas will instantly work out how much money you should have left at the end of the month. It is really important that you ensure you put in all your outgoings so that you have a true picture.
Why YOU need a Statement of Affairs
A Statement of Affairs is crucial to understanding exactly where your money goes. It will give you total awareness of what you are spending, where you are spending it and when you are spending. Once you can see where your money is going you can use this information in a number of ways:
- Do you need to cut back in some areas (eg nights out)?
- Do you have any money available to make extra loan repayments?
- Are there any outgoings that you can cancel (eg subscriptions etc)
When I created my own Statement of Affairs, it revealed spending that I didn’t consciously realise I was doing. That extra mid-week shop, that odd cup of coffee, the new top I thought I deserved – they all added up. They were eating into any remaining money I had each month and pushing me into debt.
Once I created my Statement of Affairs I could see exactly where my money was going and the areas I needed to improve on. Without this, I would have just continued getting further into debt.
Want the Downloadable SOA for FREE?
If you would like to get this spreadsheet (and 2 others that are part of the course) for free, sign up to the FREE Debt Busting – Get Set for Success! Course below.
Debt Busting – Get Set for Success! Course
|If you are anything like me, when faced with what seems like a mountain, you may struggle and lose motivation. I find it much better to tackle things if I break them down. That’s why I created the FREE Debt Busting – Get Set for Success! Course. The course takes you step by step through 6 stages to get you into a position to begin paying off your debt. Each step is delivered to you via a weekly email.|
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