How To Manage Your Wealth Wisely

Everyday finances are getting harder and harder by the day. Where does your money go? In this article you will learn how to keep track of your spending and tips to saving money.

Things You'll Need:
a small notebook and pen
all your receipts
envelope or shoe box
computer(if handy)
money management software(if handy)

Step 1
Create a budget. Knowing what you spend now is the first step to creating a budget. Keep all of your receipts in an envelope or a shoe box for future references.

Step 2
Remember to include: housing, food, auto, home maintenance, clothing, dry cleaning, personal grooming and supplies, utilities, credit card payments, loan payments, insurance payments, entertainment, child care, child support(if applicable), medical bills, legal expenses, vacations, savings, and income taxes. Any source of income or spending should always be included in your budget.

Step 3
Add up your income. Include your paychecks as well as any other income obtained (part-time jobs, tax refunds, child support payments, alimony, rent, investment income or gifts).

Step 4
Once you have obtained all of the above information, you will now subtract all of your monthly expenses from all of your monthly income. This will give you any idea of where your money is going.

Step 5
Does your income cover your expenses? If so, good for your. If not, you have some great decisions to make whether it be how to earn more or how to spend less.

Tips & Warnings
1. To live within your means, create a spending plan and stick to it.
2. Balance your bank statements down to the penny.
3. Find ways to cut back on your spending whether it be preparing your lunch at home instead of buying lunch or car pooling.
4. Hold a garage sale to sell items that you no longer have a need for.
5. Start a home-based business that does not require you to spend much to begin.
6. Save your spare change. You'll be surprised how every penny adds up.
7. Consistency is the key to managing your finances.