If you are having a hard time making ends meet, or if you need to figure out a plan to make sure that all your bills are paid on time, even if you do not get a raise at work, you will need to practice some personal money management skills.
Here are some things you will need to do in order make sure that you get back on track financially, as well as some things you can do to set yourself up for financial success in the future.
If your goals only consist of making sure that you have enough to pay your rent or fill up your gas tank each month, you will need to take another look at your finances and set some long term goals.
An important part of personal money management involves planning for the future, so think about the way you want your life to go for the next few years.
- Are you currently renting, and want to own a home?
- Do you want to own your own business in the future?
- Are you currently working out of your home, and want to start looking for a separate building for your business?
Setting up a five-year or ten year plan for yourself will definitely help with personal money management, since you will be able to see the list of all the debts you owe, and can chart your progress by checking off the debts that have been paid. A written plan will also let you know which debtors you need to contact to see if alternate payment arrangements can be made for the debt you owe.
Another key to successful personal money management is being honest about your income. Take a look at how much money you are bringing every month or every two weeks, and then look at the debts that you already owe.
Are you able to make the full monthly payment on your credit card(s), pay your rent or mortgage, pay the electric bill, buy groceries for the month, and put gas in your car and still have money left over? If the answer is no, you should be very careful not to create any more debt for yourself until the debt you have is under control. For instance, do not apply for another credit card if you cannot afford the one that you have or if your current credit card is not paid off.
Other tips for personal money management include setting up a savings account for yourself that you do not touch. Try to put at least $100 in the account every month and you will be surprised at how much money you save in the course of a year!
This way, if an unexpected financial emergency comes up, you will be able to take care of yourself and your family without having to use the money from your monthly paycheck(s). Good luck!