How to Manage Money ( Tips )

How to Manage Money ( Tips )

Money management tip: The first step before any actual math comes into the picture is to step back and think about the goals you want your money to accomplish. If your dream is to own a house, you may want to start saving early before it's time to actually go house hunting. If retirement is more a goal for you, you will want to check into what retirement options are available to you. Many employers have retirement programs where they match a certain percentage of what you contribute - that's free money right there. Saving has long been considered "paying yourself first", but many people find it's difficult to do in light of all the other expenses they have to pay. Building your future should be the first goal before everything else - you only get one future ahead of you, why not make it as pleasant as possible?

Having a sure goal is the best way to actually build a budget that works. There will be challenges to face, and knowing what the end goal is makes it easier to make the right decisions, instead of what's convenient right here and now. After all, do you really want those designer shoes or would you rather be one step closer to your dream home? Little amounts add up to very big amounts over time -- so pay yourself first!

Track Where Your Money Goes

The quick way is to build a simple spreadsheet, with all income sources in one column, and all expenses in another column. If there's a short term expense in one month, such as renewing license plates or car repairs, you can add it in for just that one month.

Automation also comes into play here - there is plenty of software on the market to help you keep track of where your money is going, along with how much money you have coming in. Price ranges based on how complex the software is. There are plenty of software programs out there that let you keep a simple log of what's coming in and out that cost less than a trip to the movie theater.

The time and effort you spend on building a proper budget from the get go will be paid back to you many times over. With a good budget, achieving financial goals becomes very easy - who doesn't want a nice car, a nice home, a nice vacation (or two!) a year, and the freedom to get more accomplished with their money than ever before? It doesn't have to be a dream on paper anyone - if you take this money management tip into consideration, you'll be well on your way to making your ideal life a reality!