Prepare yourself for some scary news. Our country has a ridiculous problem with debt. Check out the following quote from Money-zine.com’s recent article on Consumer Debt Statistics:

“The latest statistics from the Federal Reserve indicate that the total amount of consumer debt outstanding remained fairly steady in 2007. In case you’re wondering the total amount of consumer debt in the United States stands at nearly $2.5 trillion dollars - and based on the latest Census statistics, that works out to be nearly $8,200 in debt for every man, woman and child that lives here in the US.

And if you’re saying to yourself - that that statistic doesn’t seem quite so bad - just keep this in mind: We’re talking about consumer credit - which does not include debt secured by real estate. So if you’re thinking that number has mortgage values in it, it doesn’t.”

Wouldn’t ya say it’s about time we take control of our bank accounts people? I, myself, have always been fairly good at saving my money rather than spending it. I was raised in a family that avoided debt, and was taught that I should never buy anything with a credit card if I didn’t have the money in the bank to pay for it then and there. It was a good philosophy that has saved me from the torments of immense debt and bankruptcy. On the flip side, however, the mere fact that I save money doesn’t mean that I manage it well. I have never had (and stuck to) a budget. I have never developed and followed a consistent investment plan. I’m not good with money, other than letting it accrue a measly 2 or so percent interest in my savings account. I decided this week that I would apply organizing my finances to National Get Organized Month. So, I went out and registered for a personal finance class in the local open enrollment college near my house, and I’m not going to lie, it makes me a little bit nervous.

Today was the first day of class. We received our course outline from our professor. Over the span of the next 4+ months, I will be learning about credit, insurance, investing and purchasing a house.

Taking a class is just one of the many things you can do to help fulfill your New Years Resolution to control your money/debt. One of the most basic things to do, if you’re patient enough to sit down for an hour and do it, is to set up a budget.

The formula for a budget is really quite easy. You must calculate how much money you have coming in, then subtract how much money you are spending on things such as bills, food, insurance, transportation, etc. from that total. If you can achieve this and still have a positive number, you are in fairly good shape. If you find yourself in the negative numbers, you need to take some action and cut back on some of your “wants” until that number goes into the positives again. For a great step-by-step list along with a breakdown of common expenses, read the following budgeting article here.

If you haven’t made the resolution to get rid of at least some of your accrued debt this year, now is the time to do it. There are incredible amounts of resources available to guide you along the path of financial security. Take the first step in organizing your life for National Get Organized Month and organize your finances!