How can someone better manage their finances?

Question

How can someone better manage their finances?

Answer 1

Make a budget.  At the top put how much you make per month and start listing your expenses.  Start with things that are the same every month (rent/mortgage, car payment, utilities) and then move to other categories.  If you want to start saving more than put that at the top of the list too.  Move the money automatically from checking to savings at the beginning of every month, if it's not in you account you won't spend it.  Keep track of every dollar you spend for a few months and you'll get a good idea of where your money is going, and then you can decide if you really want your money going where it is.  

Answer 2

Deal with the basics first. Then if you have money left save 10 % for a rainy day or investment. Then use the balance for things you want when all other demands are meet.

Answer 3

hello - the key to managing finances and lowering your bills is understanding where your money goes.

here are some tips and ideas - once you know where your money goes you can make changes if needed -

List out how much money you have coming in each month (paycheck, alimony, side jobs, etc.).

List out what your fixed costs are (rent/mortgage, car payment, car insurance, phone, cable, student loans, commute costs etc.) If you have credit card debt look at how much per card and which has the highest interest rates.

Track it by category -

retirement (401K, etc.)

home (mortgage, rent)

car (payment, insurance, etc.)

gas

cable/electric/water

groceries

eating out

clothing

movies/plays (include the popcorn)

books

newspaper (if you already paid your news paper or magazine subscription, figure out the monthly cost and include that)

hanging out with friends (bar, pool etc)

non meal related drinks/snacks (Starbucks, diet coke, snacks)

other

other

(other could be alimony, whatever, things I did not list out but you have to pay)

and you will see quickly where your money is going to go. Then you can see if it is all the right places, or if you want to make a change and not buy so many clothes, see so many movies (or pass on the popcorn) etc. Do you need to have the car you have or is there a way to get a vehicle without a car payment? Do you need HBO?

Consider what is really important to you and what is not and spend accordingly.

Be sure to put all left over money into retirement savings somewhere and not just spend it on something else (or put it towards paying down credit card debt). And keep tracking what you spend for at least 6 months. that will help you get into habits and patterns that are good ones.

Retirement savings are very important, so if you have a 401K or the equivalent, dont stop contributing to that. I see so many questions here about stopping contributing or taking the money already saved out, dont do that. The value of the compound interest is huge.

feel free to email me for more info if you like

good luck

Answer 4

By keeping a daily journal and jotting down every penny that leaves your hand is the only way to realize where your money is disappearing.

At the end of the month take a good hard look and eliminate the careless spending.  Draw up a budget based on that journal. Include an amount for direct deposit into an emergency savings account. Set one up and you are on your way to financial health