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Money management

Tips on money management Debt Reduction

Finding yourself in a financial mess is a frightening personal discovery. Normally, people don’t really realize that they are in such a jam until they’ve reached the breaking point. Whether you’re already at the breaking point or not, unfortunately shrugging it off or running away from it won’t make it go away. It actually takes a long time to get in debt, even years. Hence, getting out of debt can never be fast-tracked.

There are no short cuts in addressing such a problem and this is where money management debt reduction or debt consolidation loans comes in. Majority of the people who are in debt are the ones who don’t realize where they’ve gone wrong. They are the ones who spend their money impulsively without thinking of the repercussions of their spending habits to their financial commitments and other responsibilities. However, if you are in debt, don’t despair; the good thing is you’ve come to realize it which is the first step to solving such a problem. The first thing to do is to manage your money in such a way that it will reduce your debt and hopefully get out of debt as soon as possible.

Your Money Management Debt Reduction Plan
There are a couple of steps that you can do to reduce your debt. If you could take these steps religiously, then you could be off to a new and financially healthy life in the future.

1. Assess yourself.

The first step to money management debt is to face the music. Find out how much debt you really have. Once you already have a clear picture of the gravity of the situation, you will be more pumped up to do something about it. Of course, you have to find out where you’ve gone wrong and you can do this by looking at your spending habits for the past months and past years. Check out which of the expenses you made were not really necessary; your goal is to find out your biggest source of unnecessary expenses like cigarettes, dinner dates, gas, etc., so you could see if you could do something about them. One of the main reasons why people get into such financial problems is their spending habits so it’s very important that you take extra measures to correct your spending habits.

2. Create a monthly budget and mean it.
Having a budget is one thing, sticking to it is another. It’s very hard to stick to a budget, but it’s not impossible as long as you keep it realistic. Money management is basically about planning, monitoring, and controlling. When you do your budget, compute for your monthly income and your monthly fixed expenses like rent, food, travel allowance, etc. With this, you will see if you are really earning enough to cover all of your basic or fixed expenses. If not, then perhaps you should find other sources of income like doing freelance work, selling some of your stuff that you’re not using, or getting a second job. Don’t forget to count in your miscellaneous expenses. When computing for your miscellaneous expenses look back on your past buying behaviors and clarify within yourself which expenses you can do without. In doing this, be honest with yourself. Money management debt reduction in really is a lifestyle changer; the main thing to remember is to not spend more than what you are making.

Of course, don’t forget about your main goal when you make your budget and that is to reduce your debt. Factor in your loan or debt payment schedules per month to your budget so that you’re sure that you’re able to pay them on time and save yourself from the late finance charges and other fees.

3. Be a smart credit card holder.
If you have credit card loans or debts, what you can do is to learn more about your credit card services. Find out which credit cards have the lowest interest rates; some credit card offer 0% introductory rates for a certain period of time. One of the things that you can do is to transfer your outstanding balance from one credit card to another credit card that has lower interest rates. Make an effort to pay more than your minimum amount due because when you’re only paying the minimum amount due, realistically you’re not really paying for the capital that you used or your debt. Also, prioritize paying your credit cards that have the highest interest rates.

If you’re biggest culprit is your credit card, then perhaps you should consider not using your credit cards. At least until you’ve paid your outstanding balance fully and until you’re very sure that you can manage and control your credit card habits for good.

4. Be a smart saver.
Every month, make sure that you save a certain amount of money even if it is just small. If you’re having a hard time controlling yourself from spending the money that you’re supposed to be saving, set up an automatic deposit for your savings account wherein a certain amount of money gets deposited into your savings account on a regular basis. Another way to save is by saving your pennies. Every night, put your loose change in a container; at the end of the year, you would be surprised how much money you’ve saved in it.

Money management entails a change in lifestyle. If you want to reduce your debt and even get out of debt in the future, then sacrifices have to be made.

Easy personal money and budget management

Who in their proper and sane minds would not want to get rich? Getting rich is almost what everybody hopes for. To get and to make your self rich sounds easy. It really is easy though but only if we all are given the right opportunity and if we all have a great outlook in life. Before we can get ourselves to be included in the list of the world’s richest, we have to start somewhere. That somewhere that I am talking about is where you are right now. Yes, the very place and standing in life you are currently in.

The very thing that we can do to get a good jumpstart in our finances is to have a good personal money and budget management. This simply means that we have to learn how to budget our money and income wisely and properly. Hearing the words budget and management may seem daunting to you right now, I promise you that after I am through, you’ll see how easy it is and you’ll be amazed to know that you too can do budget management too.

Personal oney management

The first thing that you should do in budgeting and money management is to know how much you are earning and how much you are spending weekly, monthly, quarterly or annually. Right after you know how much you are spending and earning, you can then see whether you are over-spending or if you are safe enough from the possibility of bankruptcy. It is good if you see that you are not overspending on your income. When you clearly see that you are overspending, don’t fret. There really are lots of ways to cut back on your losses. The best way to do in cutting your losses is to do a garage sale. You can sell all the things that you have no use of and even earn from it. A proof of the old saying that one mans trash can really be the treasure of another man.

If you find yourself as one that is just spending right and even saving up from your income that really is no reason to stop what you are doing and throw a party. You should always keep in heart that there is always room for improvement. You can increase your net worth by investing the money you saved in business. Many would say that investing you money in stocks is the best way to go. I genuinely am very sorry if I beg to differ. Investing your money in stocks is not the best way to go. It is true that you can quickly double you investments in stocks but only if you know what you are doing or if you get really lucky.

In the face of our economy right now, the best way to go is to create and to invest in a small business that you can relate to and that you are passionate about or refinance your home mortgage. Your customers can feel the dedication that you extend in your business that they would absolutely crave for more of what you are selling.

As I said, getting yourself to become rich is really easy. Only if you know where you are currently standing and what you really want to achieve. Success is not measured by how much you started with but with how much you gained. Never be discouraged and know that everything big, started out small. So don’t hesitate to try and apply Budget and money Management in your lives, you jus might see yourself included in the list of the World’s richest.

Some tips to personal finance management

But then there are other easy ways to do Personal money management without much intervention from other people. Budgeting is one way of knowing exactly where the money you are earning goes. This will keep you in track of your income and expenses made. Here you can do some segregation on your expenses for food, insurance, and other daily expenses. By doing these, you will be able to determine how much you are actually saving and then separate the remaining for investment.

Also, with those million possibilities of mishaps and accidents to occur, it is best that you also plan for the future. Having insurance for you and your family can help in protecting your loved ones when accidents or deaths happen. Insurances can help you in case something bad occurs and you may not be ready for it. It is also advisable that you keep at least half of your yearly income so that you will have something to use in case an emergency occurs.

There are a lot of people who are earning only enough for their daily expenses were able to live comfortably. Good money management is just merely investing, preparing for the future, managing risks that may occur and knowing the value of time and money. Your needs should be on top of the list because these are your basic necessities.

There are actually multiply ways for you to be able to manage your personal finances properly. The basic for managing your money is just by keeping track of your expenses and avoid spending on something which is not that important. Every now and then try to assess your expenses so that you know where you stand and what you still have. Generally, Personal Money Management is just spending less than what you earn and saving some for future uses.