Money Management 101

Money Management 101



Money Management 101
Managing your money is​ a​ big task .​
But if​ you want to​ get by in​ this world,​ it’s something you have to​ do .​
It can be too painful for some,​ so it​ gets avoided .​
But for the​ people who realize it,​ the​ pain/reward relationship is​ well worth the​ trouble to​ spend a​ few minutes managing your money.
After all,​ money makes the​ world go ‘round,​ so make sure you get your share! And the​ good news is: it’s as​ easy as​ controlling what you’ve got!
Here’s what you need to​ make sure that you have control over your financial situation .​
Here are some valuable budgeting techniques to​ guide you in​ your expenses and income.
The first thing you want to​ do is​ make sure that you pay for your utilities on​ time and in​ full every month .​
Don’t wait until it’s too late to​ pay them .​
The second thing you need to​ do is​ make sure that you don’t have too many credit cards .​
Only a​ few credit cards are necessary to​ get by in​ life .​
You should consider cutting up the​ rest of​ them .​
And the​ third thing you should do you,​ if​ your bills have gotten the​ best of​ you,​ is​ to​ consolidate them into a​ single loan .​
This will enable you to​ pay them off over time without getting slammed with high interest rates.
Finally,​ establish a​ budget for yourself .​
This seems difficult and that’s why most people don’t do it .​
And because people don’t have a​ budget they find themselves in​ financial straits .​
The easiest way to​ establish a​ budget is​ to​ take a​ draw a​ line down the​ middle of​ a​ piece of​ paper .​
On the​ left,​ write down your after tax household income .​
Be sure to​ write down the​ after tax amount as​ you want to​ measure available income only .​
After all,​ you don’t get to​ spend the​ before tax amount,​ right?
In the​ right column,​ list an​ average of​ each monthly bill .​
But you should also include your typical spending habits as​ well,​ like eating out,​ or​ impulse shopping .​
Don’t forget to​ include paying off your credit card as​ part of​ the​ bills!
Now that you have a​ list of​ income and expenses,​ see if​ there’s a​ way to​ increase your income,​ or​ reduce your expenses .​
Usually you’ll find a​ way to​ do a​ little to​ both.
While it​ seems so simplistic,​ so few people do it .​
And yet,​ creating a​ budget and sticking to​ it​ often separates the​ successful people from everyone else .​
What’s stopping you from doing it​ right now?




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