Introduction
Managing your money is an important part of life. You need money to do just about everything in life so it is important to know how to manage it. If you don't know how to manage and budget your money, you will soon find out the hard way how it feels to be penniless. It is not a very difficult process to learn to budget your money, if you know some simple steps to taking care of your finances, you can began to learn to get your bills paid on time, put some money in savings, and know where your money is going.
How to Manage Your Money
You can truly save money when you need to if you will follow some basic advice. It is important to first know how much money you have coming in each month. If you don't know what you have to work with, you want be able to plan your budget accordingly. You must sit down and pull out your monthly wage slips. You need money knowledge to begin making a budget and it starts with knowing what money you have.
Once you have your money amounts down, then you will need to list all of your bills. Once you have listed your monthly bills, you will then need to list other expenses, such as food, gas, clothing, medical, and entertainment. You will need to categorize each of these bills and come up with a total for each category. This works great if you use a spread sheet to make your categories.
Once you have entered in all of your totals, you will be able to subtract each category amount from your monthly income total. Whatever you have left over, no matter how small the amount, needs to go into a savings account. Don't try to use a glass jar or an envelope, because you will be tempted to use it.
Once you have paid each bill during the month, it is important to mark these bills as paid. You must subtract each amount as you use it. At the end of the month, if there are amounts left in your categories, then you should place this extra money into savings.
Your savings can quickly pile up and your bills will be paid if you will follow this simple formula. It is much better to be able to account for your finances than to be unsure of what you are spending.
How to Save Money
It is important that you not spend above your means. You need money to pay your bills, for expenses, and for emergencies. If you don't have money, you won't be able to survive. Spending your money wisely and working towards saving money are the two most important aspects of managing your money. Without these two practices, you won't be able to succeed in keeping track of your finances.
Look for ways to save money and cut costs. Instead of going to the movies, get a video streaming service. Cut out your cable and get an antennae. It also helps to stop eating out as much and cooking at home. This will save you a ton of money on groceries. This may seem like small things, but they truly add up over time. Before you know it, you will find that you are saving more and more and you will actually begin to like it!
Tips and comments
- Budget your money.
- Track your spending.
- Get a savings account.
