There are a number of ways that people can use to manage money
to stay out of debt and even establish savings over time.
If you have those items in your budget, it's also a good way to
track how much you are actually spending on them each month.
There are a number of ways that people can use to manage
money to stay out of debt and even establish savings over
Establish a Budget
The first, and maybe the most important step, is to set a
budget for yourself and stick by it. Take a look at your
household income and outgo. Set the budget up to accommodate
your payday schedule. In other words, if you get paid once a
month, then you have to budget accordingly so that you won't
run out of money before the end of the month. If you get paid
every two weeks, or every week, figure out which of your
bills have to be paid on each payday. It is absolutely
essential to set some money aside for emergencies. Even if it
is only $20 per payday, having some cushion will keep you
from having to borrow money when something unforeseen occurs.
There are all kinds of budget sheets available to help you
figure things out and many of them are free on the Internet.
However, it is not hard to make your own. Just make a list of
your income and when it arrives, as well as a list of what
has to be paid when. Check each item off and date it when it
is paid. Don't forget to budget adequate amounts for items
like food, gas, entertainment, etc. If you have those items
in your budget, it's also a good way to track how much you
are actually spending on them each month.
A good way to begin the budgeting process is to sort out all
of your legal and financial papers and file them so you can
find what you need when you need it. For example put bills
that are due on the 10th of the month in one folder, and
bills that are due on the 25th in another folder. Once you
have paid a particular bill, shred it and dispose of it, in
order to save confusion. Any other financial information,
like savings accounts, mutual funds, etc. should also be
stored in appropriately labeled folders. At the first of the
year, when your tax documents start coming in, put them all
in one folder with the tax forms. When April 15 rolls around,
you won't have to dig through piles of mail on your desk to
come up with all of the appropriate documents and forms.
Items like insurance policies should also be labeled and file
so that you can readily find them if and when you need
Find Ways to Save Money
Do some brainstorming about your expenses and how you could
possibly cut back on them. It is wise to write them down on
paper because it is less easy to dismiss them that way. For
example, can you cut down on the amount of gas you use by
taking public transportation? If you eat out often, consider
making more meals at home. Examine your buying habits. Do you
go shopping when you are depressed? Do you go grocery
shopping when you are hungry? Do you purchase items
advertised on the shopping channel without every leaving your
easy chair? These are all practices you can change. Find
healthier activities for when you are feeling down- go for a
long walk instead of going shopping. Make a grocery list and
carefully plan what groceries you need for the coming week,
then go to the store and buy them. Coupons can be
advantageous if you buy name brand items, but store brands
are often cheaper in the long run. Watch the weekly sales
flyers in the local newspaper and buy items like meat when
they are on sale. It's handy to have something in the freezer
to fix, and less costly in the long run than making a quick
trip to the store after work and picking up only what you
need for that night's meal.
Find Ways to Make More Money
Get an extra part time job, or work overtime at your regular
job, if possible. Clear out your attic or your garage and
have a yard sale. You may be happily surprised at the amount
of money you can bring in. These days, many people make money
selling items through online auction sites like ebay, and
don't have to sort and tag and have people running all over
your yard for a day. If there is a local farmer's market,
consider something you can sell there. If you have extra
produce from your garden, or are a good baker, you will find
that people are readily willing to buy things that you can
grow or make. If you make extra money, don't increase your
expenses. Either use it to pay off bills, or put it away for
Choose Credit Carefully
If you have to have a credit card, shop around for the best
deal. Some credit cards have yearly fees that have to be paid
whether you ever use the card or not. Interest rates vary
widely. Make sure you know what the interest rate is and shop
around for the lowest. If you charge something, pay it off
before the end of the month, then it won't cost you any
interest on the card. Don't use more than one credit card.
It's too easy to get into the cycle of living on the credit
cards and never really paying more than the interest on them.
This is a practice that will get you deeper into debt in the
If you have an emergency and need to get a payday loan, make
sure you investigate and find the one that is the best deal
for you. The amount of interest charged varies widely from
company to company and so does the repayment period. Find the
loan that gives you the most flexibility for the least fees.
Try to never roll your payday loan over, but pay it off in
full by the due date.
About the Author: Max Hunter is the author of many
credit related articles http://www.PaydayLoanChoice.com
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