Still Frustrated but Heading in Right Direction

I HOPE!!

Step 1--Currrent with necessities!! My monthly bills--

• Water--($120/qtr)--$40/mth--$480/yr--$0 current--$124 past due
• UPDATE 7/26/08: Paid in Full--next bill due Sept 28, 2008
• Boro (Garbage)--$14/mth--$68/yr--$14 current--$47 past due
• UPDATE 8/4/08: Paid in Full--next bill due Sept 10, 2008
• Authority (Sewer)--$32/mth--$384/yr--$32 current--$72 past due
• >UPDATE 8/20/08:aid in Full--next bill due Sept 10, 2008
• WS (Phone)--$26/mth--$312/yr--0 current--0 past due
• Fuel (Heat)--$118/mth--$1416/yr--$110 current--0 past due
• AP (Electric)--$52/mth--$624/yr--$52--current--$52 past due
• DTV (Satellite)--$73/mth--$876/yr--$73 current--0 past due
• Earthlink (Internet)--$22/mth--$264/yr--$22 current--0 past due
• Rent--$100/mth--$1200/yr--$100 current--$1600 past due
• Groceries--$300/mth--$3600/yr
• Monthly Total--$477 ($777+groceries)--Yearly Total $5724 ($9,324+groceries)
• Monthly Income (Net) $1216(-2nd income)--
• Yearly Income (Net) $14592(-2nd income)

As you can see I should not be having the problems that I am having. BUT this budget as printed does not include emergencies (ie. medical expenses) and I believe that is how my problems started over 3 years ago. Something to keep in my mind as I work on this.