Manage Your Money
Managing money is something a large percentage of the population has problems with. Usually this is due to poor planning, since most of us do not manage our money in a meticulous and detailed manner. The good news is anyone can take back control of their finances by implementing some of the suggestions we will recommend in this article.
The first thing to do to get control and properly manage your finances is to make a budget for yourself. A budget will provide a snapshot of how much money is coming in and going out. If you follow your budget, you will know what you can and cannot afford. Just remember to stick to your budget, since not doing so will eliminate any of the benefits of having one.
Most financial planners will tell you one of the rules to having healthy finances is to pay yourself first. As soon as you get paid, set aside a predetermined amount of money to go into your personal savings. If you neglect to do this, it will be impossible to ever have savings or an emergency fund.
Another important thing to do is to start analyzing your monthly spending. You will be surprised how much money you spend on needless purchases. Once you can see what your needless expenditures are, it will be easy to manage your finances.
You want to eliminate excessive spending on all levels. For example, overpaying on your phone, cable, insurance or other bills. You should shop around with different companies to get the best prices. Many times we become accustomed to using the same companies and forget we may be able to lower our bills by switching.
When you want to get out of the house, avoid recreational trips to stores or the mall. It is easy to convince yourself you are just going window shopping. The reality is that window shopping often leads to impulse buying. This is one sure way to sabotage your budget.
When you have the urge to go shopping, substitute another activity. Instead of going to the mall, you can go visit a friend or family member. If you want an even more productive activity, try going for a walk in the park instead.
Ways to Build the Habit of Saving Money
One money saving habit to cultivate is paying cash, instead of using credit cards. When you have a credit card balance it becomes very difficult to pay it off. The reason is many credit cards have high interest rates and most of your monthly payment goes toward paying the interest. Since very little of what you are paying goes towards paying what you owe, it becomes a regular, ever increasing monthly bill.
Try to always remember to use a credit card for emergencies only. Make sure you will be able to pay off what you charge as soon as possible. If you just send the minimum monthly payment, the payment will be applied to interest charges and it will take years to pay off the card.
For many, the key to controlling spending is not having more than one credit card. It is just too easy to start charging purchases on multiple cards and building a huge amount of debt.
Although controlling your personal spending seems difficult, with some planning and sticking to your budget, your personal finances do not have to give you headaches. By following some of the suggestions above, you will be on your way to making peace with your financial issues.
