Money Management
Money doesn't grow on trees, I heard that saying so many times from my father during my childhood. But if you have good money management you don't need a money tree, although I still think it would be nice to find one in the back garden!. Good money management is a process that begins with knowing where you are spending your money today and developing a plan for where you want to be financially in the future.
If the whole idea of managing your money seems too hard so you end up living from pay cheque to pay cheque then this website was designed to help you. By following a few simple rules you can take control of your finances and your money management will be less of a gamble. Managing your money begins with a few important steps, make a list of your income and all expenses for the year and prepare a budget based on that income and expenses, budget for savings and budget for any luxuries that you want to spoil yourself with, then stick to it!
View our "Budget" section for some simple budget formats.
Create a Workable Spending Plan
Creating a workable spending plan means translating your goals into a budget. How much for food, housing, and other expenses each month. How much you need to put into a reserve fund for infrequent expenses such as car repairs or insurance. How much goes into savings. You need not calculate these amounts down to the last cent. But you do need some kind of spending plan. This website will help you in:
- Setting goals.
- Prepare a budget
- Reduce Debt
- Getting Organised
- Watch your spending
Once you have created a plan you must follow it and avoid financial detours, however you shouldn't be completely inflexible because unexpected money needs--or changes in your overall plan--may arise. But you should be consistent and reasonably faithful to your budget.
You know that certain expenses are essential and others optional. You also know that some of your income should be set aside for savings. With this in mind, establish some priorities. Set up a reserve fund for those once- or twice-a-year expenses so that you can budget for them throughout the year. For example, if you make two $300 life insurance payments each year, you should set aside $50 a month for insurance in your reserve fund.
Don't be disappointed if your budget doesn't work out
Don't be surprised if your budget doesn't work out perfectly all of the time. Expect the unexpected. Maybe this is the year you'll be hit with an unusually large dental expense. Or next month an unexpected auto repair bill. Don't let these emergencies shake your faith in your spending plan. Here's where your savings can come to the rescue. Or, perhaps you'll have a readjust your budget for the future. Maybe you'll have to cut down on entertainment for awhile to spend more on something more essential. These adjustments are perfectly normal and should be expected. Make the adjustment and continue on from there. But stick to some kind of plan.