Times are very tough right now, there’s no question about it. For the majority of people, it can seem like they are just about making ends meet - is an almost an impossible challenge. While your income remains static, expenses however, are constantly rising. Your financial buying power is being diluted to the point where you’re searching desperately to save in any possible area of your budget.

Then there’s always tax season that has to raise it’s ugly head once every year and then the question on everyone’s mind becomes “how can I save money this year and pay less taxes.  Both problems, daily budgeting and having enough money at the end of the year to pay your taxes, both boil down to the same thing, learning how to manage your money.  This has become an essential skill, personally, I think it should be a subject that is taught at school. Here we’ve got some tips on making your income stretch to meet your expenses, while building a
savings account, even on a modest income.

However, before I begin, it’s worth mentioning the W-4 form you must file with your employer. This is the form is where you fill in the number of exemptions you wish to claim for payroll deductions. For example, let’s say you’re a single person, earning $1500 a month. It’s logical that you probably thinkd that you should claim only one exemption, but did you know that you are legally entitled to claim up
to 9 exemptions, for payroll deduction purposes? Sure, you aren’t very likely to receive a refund come tax time, but nevertheless, claiming 9 deductions will increase your net pay substantially.

If you claim only one tax exemption, your Federal and State tax deductions are calculated at the regular standard rate. The result is that you will get a nice tax refund at tax filing time, but the other side of the coin is that you won’t earn any interest from the government on that money. It can be a smart move for you to keep that money in your wallet during the year! You can make a rough assessment by using last year’s tax tables to optimize the number of exemptions
you claim on your W-4 form so that, come tax season, you actually owe nothing. You can file an amended W-4 at any time during the year.

When you are learning how to manage your money, it is essential that you make a budget! It’s a must!  List all of your essential expenses first, being food, rent or mortgage payments, transportation, car insurance, and clothing. Then do the math. As you probably already know, there may not be much money left over.

Let’s say, for example, you’ve got $200 left over each month after taking care of your necessary obligations. On paper, that may seem workable to you, allowing you the occasional dinner out or a night at the movies.

In reality, though, you also know that ‘things come up’.

Maybe all of a sudden you need new tires for your car, an unforeseen and uncovered medical expense crops up, or the phone bill is higher this month than anticipated - there goes your extra $200.

Understanding how to manage your money intelligently and carefully, it’s imperative that you allow for a margin of error. Once your basic budget is in black and white, start saving all of your receipts, for at least 3 months. Keep them in a sfae place and then at the end of 3 months add all the expenses up.  You’ll then see that the key to how to manage your money lies in the details.

You may not have even thought of such an array of minor expenses, such as mailing packages, a visit to the dry-cleaners or snacks and coffee purchased on the way to work. These expenses all add up! Saving your receipts provides an object lesson in how to manage your money effectively - it gives you a clear picture of exactly where your money is disappearing to. Maybe your snacks and coffee comes to a total of $30 a month. If that’s the case, then why not consider investing in a thermos and buy your snacks at the grocery?  Just there you can save another $30 per month.

Then there’s the problem of credit cards, so many people have this problem and are searching for  credit card debt elimination .  These are one of the most common pitfalls in even the most well-intentioned budget. Just take a look at your past credit card statements and see how much impulse or unnecessary debt you’ve incurred. The banks just love to see that debt pile up. You must discipline yourself to the extent that your credit cards are only used when it’s completely necessary. This doesn’t mean spending your money on a pair of shoes you can’t afford to pay cash for, but should be reserved only for things like new tires, an unforseen medical expense or other necessary item or service.

I’ll finish now with a great tip on how to manage your money so effectively that you, on a $1500 per month income, can end up with a $900 savings account in a year! Setting aside just 5% of your paycheck each week - that works out as $17.50 – and depositing it in an interest bearing savings account, it will net you about $900, plus interest, in 12 months. If you also save your loose change, leave the magazine out of your shopping cart or rent fewer movies each week,
you’ll have even more more saved. Just think what you could with an extra $900 or $1000, you could even have a nice vacation!

To  learn how to manage your money isn’t difficult, it just needs a hard look at your budget and a little self discipline and self control. Give these tips a try, you’ll see your bank account going in the right direction for a change!

Managing Money Matters to Become And, More Importantly, Stay Wealthy

The first excuse isn’t accurate because managing money will lead to your financial freedom, not restrict you. The second excuse doesn’t hold water either because the truth is that if you cannot manage a very small amount of money you [...]

Managing Your Money Effectively

Antonia speaks about proactive money management and achieving your financial goals. You need Flash. Managing your money effectively. Antonia speaks about proactive money management and achieving your financial goals.

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