Be Confident Managing Your Money With These Three Simple Rules
Trying to pay off debt, save for big purchases, and plan for your future all at once can be overwhelming. With so many different strategies out there, It can be tough to even figure out where to start. It’s easy to get discouraged.
It’s not hard because you’re not smart enough to understand the ideas. No, there is just too much confusing information out there. In an area as personal as personal finance, everyone has an opinion. Usually, that opinion will be completely backward from the last one you learned. I want you to know that managing your money only has to be as complicated as you make it.
So, I’ve come up with three simple rules for personal finance money management that will keep anyone out of trouble and feeling confident in making money decisions. Even you.
Rule #1: Never Spend More Than You Make
What it means: You need to control your spending.
Why it works: In order to know if you’re spending too much, you need to know what you’re spending. Tracking your cash gets you more involved when you make a purchase. When you’re paying attention to where your money is going, you can make smarter decisions.
How to stop over spending:
1. Make a budget.
For one month record all the money you earn and all the money you spend on stuff, debt repayments, or savings. Group your expenses together to get a total for the month for restaurants, groceries, gifts, etc.
You want to see more money coming in than going out of your pocket. If you’re spending more money than you’re making, you’ve got some work to do. You won’t get ahead unless you get your budget to balance.
If you use debit or credit for all your purchases, your last month’s statements will have all the information you need to get started today!