Quick Wealth Network

How can one improve ones money management skills?

Public Comments

1. Track everything you spend.
2. Start writing down every penny you spend in a small notebook that you can easily carry with you. At the end of the week, look at where your money has gone. Decide what of that was unnescessary, and put that amount in a savings account. Put the rest in envelopes: food, entertainment, bills, etc... If you've spent all of your entertainment money by Monday, too bad, wait until next paycheck to go to the movies! The envelope system will help you learn how to budget, and eventually, you will be able to just know what you can spend and what you can't. If you think you need professional help to get on a budget, I'll include a great website that will help.
3. You carnt its impossible. Even if you right all your debts out, it never works out like it does on paper...Trust me !
4. Buy a notebook and keep track of every penny you spend. Set up a budget to pay bills, savings, etc. A credit union or bank can also help you. Remember to save at least 10% of your gross income to yourself. You have to know how much you bring home (pay) and how much you are spending.
5. First, start by tracking your income vs. expenses. Computer software like Microsoft Money works great for this. After a few months, you can get a real good idea of how much of your income is going to essentials (rent/mortgage, utilities, etc.) and how much is going elsewhere. Then you can evaluate your spending haibits. The key here is to decide what is important to you. The two opposite ends of the spectrum are the miser mentality and the live-like-you-are-dying mentality. Personally, I think being both of these mentalities are huge mistakes. You want to be able spend your money on what is important to you, but you want to also make some sacrifices so that you will have financial security for the future. Balance is the key. After you adjust your spending habits, you'll (hopefully) have some extra money left over each month. With this money the best things to do would be to: 1. Pay off debt faster! 2. Keep some savings, and 3. Invest; in that order. There are some exceptions to the order above (ie. paying off a low interest mortgage is considered less important to some people then investing). But in general, the order above is a good general rule. And if any of the debt is on credit cards, pay it off ASAP. Credit card debt is some of the worst debt possible, and the most common. Personally, I don't believe anyone should use a credit card unless they are prepared to pay it off completely within a month. Obviously, this is sometimes unavoidable, but once again it is a great general rule to live by. In conclusion, I hope this helps. Money management isn't very hard, but it takes some work and a lot of discipline.
6. Basic tenet: Spend less than you earn.
7. Money management skills consist of 3 things.... Dicipline, organization, planning, record keeping....um, ok 4 things. If you can't dicipline yourself with spending don't even try to get started. It won't work. If you can't walk by that overpriced Starbucks shop without buying a coffee and donut, you are doomed to fail. Organization involves sitting down, and writing out a budget. Get a spreadsheet program. They are not difficult to put together. If properly done, you can easily plan your budget for months! Planning. Goes with Organization....what expenses in the future will you have? Want to save for a vacation? Put money away for taxes? This is where you start figuring it out. Record Keeping. Use a checkbook whenever possible. Some people put most of their payments on their credit card (making sure it's paid off every month). That way, when the bill comes in, it's easy to sit down and update your spreadsheet. Planning for the future involves looking into the past and gathering your old records. Example: By looking at your utility bills from a year ago you can estimate your upcoming payments. There are a lot of resources on the web that will help you create a budget. Just do a Yahoo search for "creating a budget". Need more help or encouragement, contact me. My spreadsheet is so involved that rocket scientists can't figure it out.
8. #1 Don't take advise from Broke People. #2 Seek advise from the wealthy. #3 http://www.DaveRamsey.com
9. Money management skills are acquired over time. Start by writing down what you spend money on every day. Looking at spending patterns begin to eliminate some spending that is not helping your situation. Eventually you will develop a budget. Stick to it, allow at least 10% for savings (not necessarily IRA, ROTH IRA or 401k) and keep increasiing it. Look forward to a huge change in the USA economy and you will be prepared for it. Everything you do today will prepare you for what is to come.
10. Open a savings account, and constantly put money in it. Even if it is only a couple of dollars, this will help you start a fund that you can grow.