Entry

Any Tips To Manage My Personal Finances?

Oct 3rd, 2007 20:01
Joseph Then, http://www.easypersonalfinance.com

Yes, there are a few things that you can do to manage your personal 
finance. While it would not make you a runaway millionaire tomorrow, 
but I assure you that the sooner you take control of your personal 
finance, the sooner you will live a happier life, free from financial 
woes.
Tip #1: Start Saving!
First thing’s first – start saving! Your first step to managing your 
finances, to your surprise, perhaps, is not making more money. After 
all, making more money takes time to learn.
But you can start saving NOW. It is a no-brainer, really. If you have 
$100, just save $20 and you can spend the rest. It is that simple!
All in all, saving is very basic. But I know that giving this advice 
to anyone is almost as effective as saying "smoking is not good for 
your health". Right…! And the result? The advice goes into one ear and 
out of the other – most people spend all their income and 
later "enjoy" horrible financial disasters.
It is a small wonder why making more money does not necessarily equate 
to managing one’s finance better, but in fact, makes financial 
management more out of control because more money means more spending 
and more spending means more debt!
Tip #2: Budget Your Income
Played soccer? Can you imagine a soccer team going all out for offense 
and neglecting their defense line? Can you also imagine what happens 
when not only the strikers fail to score a goal, but the ball ends up 
in the other half of the field – the other half with no defenders 
around to defend their own goal post?
Unfortunately, this seems to be the case with most people, again. All 
out making more money – doing the offenses! But when their plans fail 
and backfired, there is no safety net for them to fall onto.
As mentioned earlier, practice a good saving habit, regardless of how 
much or how little money you are making. And to have that 
accomplished, you need to budget your income.
I know that big time money-makers look down on this finance management 
method as "too safe" or "for dummies only", but I also know very well 
that in spite of the huge incomes they make, most of them are almost 
as broke as the janitors, too!
The true definition of budgeting, therefore, is "the art of spending 
money wisely".