It’s time to solve mystery.

You don’t have to be a financial wizard to solve this mystery. And you certainly don’t have to be Sherlock Holmes. You see it really is an elementary concept. If you ask any elementary school student they'll tell you that you can't take 10 from 5. There can be no negative integers in this equation. Simply put, you can’t spend more than you have! You have to fit your "living" within your "means."

For most of us living in plastic zone, this means making some serious changes in our spending habits. It seems an impossible feat to reduce debt while still building a foundation for your financial security and independence. It Can Be Done! And it is "elementary my dear Watson!"

~The first step is to realize where your money goes. How are you spending it? This requires a little recording keeping but is not difficult. Simply write down every purchase you make, that is not a monthly bill, for at least a week. This includes every check, debit, credit card, and cash transaction made (if married, your spouse must do this also). When finished sort these into appropriate categories to plug into your budget later. For example; dining out, lunch at work, groceries, coffee, gasoline, snacks, well you get idea.

~Second lets tackle that debt. The monkey on your back will always insist on being fed until you take control of your money and say NO MORE! Make a commitment to stop using credit. You must make a decision to invest in yourself from now on. Not credit card companies. Take control by knowing what you owe , what you’re paying, and how much it is costing you. Make a list. Include Creditors Name, Amount Owed, Interest Rate, Current Minimum Monthly Payment.

Add up all of your current minimum monthly payments. This is your monthly debt reduction payment for life of debt. You will pay this consistent amount each month until debt is paid in full. Roll down freed up monies from one creditor to next as accounts are paid. For example: your list of payments include a visa you must currently pay $80 per month. You will make that $80 payment regardless of minimum due (unless for some reason payment goes up) until debt is paid. When it is paid you will take that $80 and apply to another creditors monthly payment. This is secret to paying them off before you die! And, still have time to enjoy a debt free lifestyle.

~Next, you have to write down regular monthly expenses. Things like mortgage, cable, phone, electric, car payment,. Any expense that you pay every month. Insurance payments can be included if you pay monthly payments instead of a lump sum. Some of these expenses may not be same each month ( like electric bill). You should figure an average monthly amount for these. If your provider offers a budget plan where your payment can be a consistent amount each month, this makes budgeting these bills much easier. So do it!

Choosing a knowledgeable mortgage lender can make a difference in quality of home you are able to purchase with your finances. I prefer to recommend a mortgage broker to my clients, because they usually offer 50 or more programs. Regular mortgage companies are usually locked into one source. Take time to research a mortgage lender. And, remember, creative financing can be way to go if you need a higher priced home with more space. Home buying is different now then when your parents or grandparents purchased a home. When they bought real estate, 30-year mortgages were standard. That’s because 10-15 years ago, a person bought one or no more than two homes in their lifetime. Currently, Americans tend to own more than three homes in their lifetime.

Creative Financing Find a lender who knows business inside and out and can make your dollar go further. Ask your realtor to research housing market in your area, to predict a rise in property value for that area. When you seek a mortgage, obtain quotes from three or more lenders. Make certain at least one of these is a mortgage broker. Ask how many loan products they have to choose from.

Flexible Mortgage The 30 year mortgage is just one of many choices in real estate loan market. Rebecca Nichols, a loan officer with Breakwater Mortgage in Virginia Beach, says, “It’s not so popular anymore to do a 30-year fixed loan. People want options to help them get most value from their investment. Some want to pay lower monthly mortgages so out-of-pocked expenses are less. There’s no real reason anymore to be locked into a 30 year amortized loan.” Rebecca pointed out that in beginning of loan stages, most consumers are paying off interest anyway.