The next phase after you have collected the expenses data is to Analyze it. You need to focus on Two items : Expenses & Savings.The third item is income which we can assume to be fixed. First take a look at your expenses : Expenses follow the 80/20 rule :20% of the items make 80% of the expenses which are driven by lifestyle .Identify 20 % of the high expense items form your expenses. Typically they comprise of payout for Credit cards, Debt Servicing, House Rent, Eating Out & On Vehicle. You need to take some urgent actions which we will discuss in the future posts. Also identify some expense items that are not high on expenditure but which you can certainly live without Secondly Take a look at how much do you invest every month : The rule of thumb is you should put at least 10% of your income into Savings that would potentially grow at an annual rate of 10%. This is easier said than done