Oprah's Debt Diet Step 5: Create a Monthly Spending Plan

If you get paid more than once per month, the next step is to determine which bills to pay from which paycheck. Verify the due dates on your bills and plot them on a calendar. Then pay as many bills on time as possible from each paycheck. An expense like groceries should be allocated based on pay periods. For example, if your monthly plan is $400 and you're paid on the 1st and 15th, you can allocate $200 per check.

If you and your spouse agree to a cash allowance for personal expenses, use the same process to determine how much cash each person needs for lunches, gasoline, personal care items, etc.

Remember, fine-tuning your spending plan is a process. If the plan you put in place for one month doesn't work, it doesn't mean you should quit the Debt Diet. It means you should continue to tweak the plan and figure out how to make it work to accomplish your goals. Plus, just doing this exercise will inevitably make you more conscious of how you choose to spend your money and how motivated you are to pay down your debt.

Step 6: Take big steps to grow your income

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