Hey we all would love to have more money, but sometimes making the money you have last and work well for you can be really tough. I am sure that more than a few of you are in the same boat that I was for years where you would be living paycheck to paycheck where by the end of each month you are just praying for payday to get here! Well today I have a few tips for you guys to help you manage your money a little better and make it so you can live within your means. These are fairly common sense and following them will help you get on track with your finances.
Write A List Of Essential Expenditures
Ok so this may be boring, but if you want to make your paycheck last the whole month then you need to do this. Your essentials are things such as rent, food, utilities and pretty much anything that you need to live. Things such as a budget for clothes, DVDs and jewelry are not essential expenditures. This list needs to be only things that you simply need to live your life.
Figure Out What Your Monthly Income Is
Most of your, if not all of your bills that you will be paying, will be monthly. So even if you get paid weekly, every two weeks or are part time or self-employed, try to work your income out as if you are paid monthly. Never forget about taxes! We all have to pay taxes and if you live in a country where you are responsible for your own tax, make sure you take this amount away from your monthly salary. The amount you write down for your monthly income has to be, let me say that again, has to be after you have taken away the tax.
Write Down All Your Expenses As You Make Them
Include all the things from your essentials list that you made here. But if you need to go food shopping and spend say fifty bucks then write this down. If you need to pay for a new tire for your car, write this down. The idea here is to make sure that you are keeping track of every penny that you are spending. This way you will have a much better idea of what you are spending your money on and how much money you have left.
Compare Your Incoming Money With Your Outgoings
By looking at how much money you are earning and how much you are spending each month you get an idea of what you need to cut back on. If you do have a few extra bucks before the next pay day, then well done you! You are well on track to getting your finances in order. But if you are in the red and spending more money than you are earing, then it’s time to check your purchases and see what can be cut next month. Maybe lower your cell phone tariff? Or cut back on nights out to the bar or the movies? If you have kept lists of what you have bought and spent your money on, then you will have a great idea of what can be cut.
Have A Savings Goal
Saving may sound boring as hell, but the fact is learning to save is essential to getting on the right track with your finances. Some people like to save a few hundred a month. But when you are just getting your finances together (no matter your age I might add) I would recommend that something as small as say 20 bucks into a savings account is a great way to start and get you in the habit of putting a little away each month.