If you would like to start managing your finances from today, it is good that you found this article as it is going to help you achieve this. So, without further ado, here are tips to help you manage your finances:
Write Down All Your Expenses
When you write down all your expenses, it becomes easy to trim your costs and save money. For instance, you may realize that you can reduce the amount you pay for specific bills by 5 dollars, 10 dollars, or more. Clothes, shelter, bills (at least a payment), and food are the critical items for any budget.
Anything else is luxury. If you are paid a monthly salary, I would advise you to write down all your expenses at the beginning of every month. Your budget should include all bills, including small ones. This is exactly what I usually do every month. Once I have set aside money for bills, I calculate how much money I will need for groceries.
Anything that remains will be for laundry and other expenses. If there is any amount left from these expenses, I divide it by the number of weeks in that month (4 or 5 weeks). This helps me know how much I can spend every week minus the necessities.
If you get two paychecks every month, per person, you should have money to pay your rent by the 1st day of the following month. You should also have money to pay for the phone, electricity, and cable bills (at least necessary expenses) by this date.
Save As Much As Possible
Try to save at least 5 dollars every time you get your salary. Even saving a dollar is better than saving nothing at all. Before you set off on your grocery shopping trip, create a grocery list. A friend of mine who uses her monthly menu to determine the groceries she will buy for the whole month.
Use Only One Credit Card
To save money, have one primary credit card to cover unexpected expenses. This card can be American Express, MasterCard, or Visa. Having more than one credit card will make it hard for you to save money as this may tempt you to overspend.
Take a Budgeting Class
A budgeting course will help you understand the budgeting process and help make budgeting easier for you. Find out whether there is an organization like YWCA offering budgeting classes. I took budgeting classes free of charge at them.
Talk to the People You Owe Money
It is a good idea to talk to those you owe money, particularly the electric bill, especially considering the fact that winter is just around the corner. If you have online payday loan creditors tell them that you want to reduce what you pay them by at least 5 dollars. Explain to them why you are doing so. Also, ask them whether they can freeze the interest for a minimum payment every month (only that it is affordable if not, pay what you can afford).
Track Your Expenses Every Month
Tracking your spending on paper can help you have an impression of where your money is going. It also helps you identify areas that you can save money. Try to cut your monthly expenses so that you may be left with more money to spare. For instance, you could pack your lunch, avoid eating out, avoid buying lottery tickets, take the bus, and do other things that will help trim your budget. Saving money will help you have money for the essential things in your life.