Ways to Manage $ Better
Ways to Manage Your Finances Better
1. Create a budget and revisit it often. Whether in your personal finances or in your business, it is absolutely imperative that you work with a budget. A budget helps you to keep track of what’s coming in and what’s going out. More importantly, it helps you tell your money exactly where it should go.
Quick and Effective Guide to a Fail-Proof Budget
- Create your budget.
- Track your spending throughout the month.
- Adjust your spending and/or budget as necessary.
- Seek ways to save more money.
- Seek ways to make more money.
- Get accountability to help you stick with your budget. Contact us
- Celebrate your accomplishments.
2. Dave Ramsey is a strong proponent for the envelope system. When I first heard of this, I thought to myself “How ancient!” However, I have come to realize how effective it is. Once your budget is in place and you know how much you’ve allocated to spend in each area, you set up your envelope system, especially for those problem areas where you tend to overspend, such as food and entertainment.
The key is to set aside the allocated dollar amounts in cash in the designated envelope each month. Each time you go food shopping, you will take and use the cash in the envelope designated for food. When it’s done, it’s done! Unless you are going to allocate from another envelope but you absolutely cannot use credit cards. This takes discipline but with practice it becomes second nature. Of course, if you have money left over at the end of the month, then you decide how to allocate those extra funds. Think save first, instead of always thinking splurge, although it’s okay to do this sometimes with extra.
3. Set up an emergency fund to take care of unexpected expenses. For more details on this, click here.