I try to constantly read articles and talk to friends, family and even strangers about money. As we all know America is currently knee deep in a financial recession and money is on everyone’s mind, specifically how to make more of it and how to keep more of it. Sometimes I come across women, whether it’s women I’ve spoken with, saw on television or read about in an article who haven’t the slightest idea of how to manage their money or who think they’re doing a good job at managing their funds when they really aren’t. I want to share seven (that’s right, seven) tips that I practice religiously when it comes to managing my money.
Tip 1: Before you spend, make a schedule Getting a calendar and making a list of what bills are due and when they are due really helps to stay on track and pay bills on time. Also listing when your scheduled pay days are on the calendar will be a huge help. That way, you prevent yourself from spending your whole first paycheck on all of the bills for the month and leaving nothing for food and other essentials.
For example, if you get paid twice a month, once in the beginning and once and the end of the month, and you have bills that are due both at the beginning and end of the months , with your first paycheck you should pay all the bills that are due BEFORE your second paycheck. With that second paycheck, pay all the bills that are due after the second paycheck. If you find that you have bills that are spread throughout the month and would like to have more control over when they are due, try contacting the collector and ask if you can change your schedule due date to a date of your choice. Most companies will gladly let you do so.
Tip 2: If you want something, give it! I’m a huge advocate of tithing and giving to others. As a Christian I firmly believe tithing directly affects my income, and I’ve experienced, on several occasions, where my income was positively impacted when I was actively tithing. (DISCLAIMER: I’m not telling you to run out and give your next paycheck to the church you attend. Christians typically tithe 10% of their income. I’m just sharing my personal experience and am in no way forcing my religious beliefs )
Further, I believe that giving to others who are less fortunate can also reap a harvest in your financial crop.
Tip 3: Pay your bills before you spend If you do actively tithe, I would suggest this tip after you tithe. If you do not tithe, this step can be done first. Your bills are the most important things you can spend your money on. Essential bills affect your living situation, your transportation, your health coverage, etc. It’s important to pay things like mortgage/rent, telephone, health insurance, car note, car insurance, etc. first.
Tip 4: Buy only what you need After you’ve given a little and paid the bills, then you should spend on the essential products you need like food and household items. Making lists and budgeting according to how much you have left is a big help because it doesn’t leave room for you do go overboard and spend too much.
Tip 5: Save, Girl! Save!!! At this point after I’ve tithed, paid bills and bought my necessities, I would save at least half of the money I have left. Sometime I would save more depending on my motivation. It is always smart to save as much as possible for a rainy day. You never when you’re going to need a new transmission or sudden surgery.
Tip 6: Spend Cash, Not Credit I’ve found that I’m more likely to spend less when I’m spending cash. There’s a big difference when spending $125 in cash versus $125 in credit. Somehow it hurts a little more and you’re more likely to exercise self-control.
Tip 7: Have a limit When you’ve done the responsible thing and want to spend a little money on a manicure or some new shoes, make sure you have a spending limit. Budget a specific dollar amount when buying the things you want. This will help to keep as much money as possible. Well, there you have it. I hope that these tips are able to help anyone who is seeking to manage their money even just a little better.
One more “tip” I’d like to share for those who believe that managing your money is too difficult or that you have to be some mathematical genius to do so is… – Just do it! Seek advice, research and try!
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