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How To Manage Your Money by Martin Divalut http://www.figmoney.com Do you wish you knew where your money was going each month? Somewhere along the line you get a paycheck, and then, boom, it's gone! Where did it go? How can you get your financial situation in check so that you can rest assured that you and your family will have the money you need when the time arises? Well, like so many other things in life, you need a plan. But how do you start? Maybe you were never taught in school or by your parents. Are you just out of luck? Not at all. First, sit down and put together an all-inclusive list of every expense that is absolutely necessary each month. This list may include a mortgage payment or rent payment, utilities, transportation costs, food, insurance and so on. Don't include any money spent on unnecessary purchases or services. The sum of all the required expenses is the amount you need each month to survive. After you know how much you must budget for your basic expenses, write down how much money you should have left at the end of each month. Now, you want to make a budget for the things that aren't required. Plan in some money to have fun with your family, add a little extra money to paying off debts or putting back for retirement or college. Decide exactly how you want to use that extra money. Do you want to give each family member an allowance to use for that month? Do you want to save money for a large purchase? The rule of thumb is to always have enough savings to get you and your family through three to six months if you ever did not have money coming in. This will feed and house you during that period of time. If you can't bring yourself to undertake these simple steps, or if you have any problems getting through them, you may want to sit down with a financial planner. A financial planner's goal is to help you set up your budget so that you know exactly where your money is going and that you are happy with its destination. If you come up with a budget, make sure you adhere to it. If you don't, the whole process of learning where your money is going was useless. Plan and stick to the plan. You'll find yourself managing your money instead of the other way around. |