I'm going through this weird transition at the moment. I'm trying to morph from spendthrift to scrooge, and it's a painful process. It's also a very necessary process. My business has done well, but I've dipped into the old business account far too often and haven't left enough to pay the government their share of my earnings. This has left me with a massive debt and the only way I can pay it off is to change the way I've been living and cut back my expenses. It's been nice having money (when my kids were little I was really really poor) and I've been a little irresponsible. It's taken a while to come to the realisation that I have to change my attitude towards money and become responsible. Oh hell, am I finally becoming a proper grown-up?
The first step was to meet with my accountants and establish the debt - how much was owed. Then I worked out a realistic budget for myself. I used a really great website to do this - www.sorted.org.nz. I loaded in the actual amounts I've been spending. It exceeded the amount I'm meant to be paying myself from the business by more than I'm going to divulge here. It's embrarrassing to see how much I was spending. Then I plugged in some realistic targets. The next step is to set up an electronic budget so I can track everything and see how much I can spend.
I thought this process was going to be scary and unpleasant, as well as difficult, but now I have my head around it, it's actually quite fun.
I now have three to five years ahead of me to get my financial situation back to a healthier situtation. Yikes!