We’ll do a quick run-through of some tips that should help your money management plans.
1) Get organized! Create a list of your current bills. Print a month-long calendar and record the due date of each bill. Paying your bills on time will help you avoid late fees and penalty charges, not to mention the anxiety of getting cut off from services.
2) Prioritize your loans and understand your total debt, including informal debt. This way you have control of your debt payments and can avoid piling on more debt due to missed payments. The combination of knowing organizing your debts and bills gives you the opportunity to understand your spending and investment power.
3) Examine your spending habits: Track your weekly and monthly spend. Do this task continuously for 2 months and this will give you a clear picture of excessive spending that could be used for investment purposes. The main columns to be tracked are:
- Document your current cash assets.
- Record all income.
- Record all expenditures.
From this, you should create your own monthly budget.
5) Follow your budget to manage your day-to-day spending.
You always want to spend less than what you earn. If you’re having an issue with ‘balancing your budget’ so that your expenses are less than your income – start to research some living tips that help you save money. Some ideas may include:
- Review/downgrade your cell phone / data plan
- Review/downgrade your cable TV options
- Minimize your expenditure on eating out
- Plan your meals for the week and grocery shop wisely
