Wealth Building Tips: Manage Your Money
By
Neen James.
As someone who loves to shop, enjoys holidays
and owns way too many pairs of shoes, managing my finances is definitely
something that does not come naturally to me, I have had to learn. Managing
your money is so important in becoming more organised, less stressed and
more productive in your life – you’ll be amazed at what you can
achieve with your money when it starts working for you, rather than you always
working for it!
Seek advice. It’s funny how most of us
will go to experts for help in so many different areas of our lives, but
we seem to think that somehow managing our money is something we can tackle
for ourselves – usually when all evidence is to the contrary! Look for
a financial planner or accountant who can help you set a course for your
financial future – you’ll identify your future financial goals,
get real about your budget, set up investment strategies that will help you
to achieve your goals – and you’ll wonder why you didn’t do
it sooner. |
Budget
is not a dirty word! I know for many people ‘budget’ and
‘diet’ are in the same category, but a realistic budget is a
phenomenally powerful financial tool and is imperative if you want to take
control of your money (budgets can, and should, leave room for money to have
fun with and to reward yourself with for all of your savings efforts!). If
you find establishing a budget difficult to do (or to get motivated to do)
on your own, seek help from a financial professional or even a friend, colleague
or family member who has it all together financially.
Keep track. Keep a written record of every cent
you spend for 30 days to see where all your money is really going. This activity
serves a number of purposes – firstly it probably shocks you into reality
and secondly, it helps you to identify categories of spending which you’ll
need to include in your budget. Remember, keep track of every single
cent…at the end of the month, if you’re spending more than you’re
earning that’ll be a good indication of where some of your financial
stress may be coming from!
The big picture. As well as looking at your
day-to-day spending, estimate your annual expenses by looking at all of your
regular bills and financial commitments and totalling that amount for the
whole year. Once you know what your total fixed liabilities are for the year,
divide that amount by 12 for a monthly figure. This is the amount you should
be putting away each month just to pay your bills.
Keep on top of it. Review your budget weekly
– this is a great habit to get into and helps you to keep on top of
where your money is going and to quickly identify areas where you are spending
too much – it can be quite an eye-opener! You might create a spreadsheet
to enter your income and expenses into and to keep as an ongoing record.
|
Credit or charge? Change your
credit cards for charge cards that you pay off in full each month. Knowing
that you’ll have to pay it off at the end of the month is a great motivator
to help you get past those impulse purchases. If you do want or need a credit
card, keep your credit limit low to help stop you from spending too much.
Go online. Bank fees and charges are one of
those small expenses that don’t seem like much each time, but they can
add up. You can easily avoid them by changing your banking habits. Online
banking is ideal; it’s cheap, convenient, reliable, saves you time and
helps you to understand your financial position 24-hours-a-day.
Keep your receipts. How many times have you
wished you kept the receipt – whether it’s so you can return or
exchange an item or claim it on your tax? Set up a simple receipt filing
system – it doesn’t have to be complicated, perhaps just an
alphabetical file – and you’ll be able to find anything you need
without the stress.
Tax time. Keep a separate file for your tax
receipts and other documents relating to your annual tax return. This will
save you from the frustrations at the end of the financial year and help
you (or your accountant) to make sure you maximise your chances of receiving
a tax return.
|
| Neen is a Global Productivity Expert: by looking at
how they spend their time and energy – and where they focus their attention
– Neen helps people to rocket-charge their productivity and performance.
A dynamic speaker, author and corporate trainer, Neen demonstrates how boosting
your productivity can help you achieve amazing things. With her unique voice,
sense of fun and uncommon common-sense, Neen delivers a powerful lesson in
productivity. Find out more at
http://neenjames.com/ |
|
our links
OUR
ARTICLES
DEBT
BUSTER TECHNIQUE
DEBT
GUIDE 2006
google links
How To Get Rid
Of Credit Card Debt
|
