Managing Money

I am the money manager in put house. I have sat sat down and added up all our bills for the year, then divided the amount by 26 because my husband is paid fortnightly and that ensures that the amount required to pay the bills is always left in our account. The only sad thing is that there is not very much left over!

How do I manage my money? First off, I have signed up for online banking with all of my checking, savings, credit card, credit line, and loan accounts. It definitely helps keep track of spending, to make sure you pay all of your bills on time and it is much, much faster than running around town and wasting money on gas. Second, I have been researching the subject for the past year and a half. I read books on the subject regularly. One of my absolute favorite books on this subject is "Your Money or Your Life: 9 steps to transforming your relationship with money and achieving financial independence" by Joe Dominguez and Vicki Robin. It is easy enough to find online. Third, I have been making sure that when I buy something I really need it. I often ask myself: How often will I use this item? Is it worth the price I am paying or should I check around before purchasing this item and this price? Do I already have an item that would work for the same purpose? This process often helps me put things back on the shelf. This process helps me realize what I really need and stops me from buying every shiny new toy that pops into view. Forth, I have created a chart (on the back of an old poster, because let's face it...poster board can be pretty spendy...especially for something that you are probably only going to use one side of...) that shows my income verses my expenses. Because I see this chart every day it helps me notice if I need to cut down on my expenses to make them lower than my income. I also chart all of my different credit card, line, and loan balances on the chart and am proud when I see them drop each month. It most certainly helps me stay on track! I hope this gives you a few ideas on how to start managing your money and get out of debt!

The price of groceries is still going up and probably won't stop any time soon, so the sooner we decide to buy cheaper foods (but not unhealthy ones!) the better off we'll be. I've been frugal most of my life and I still find ways to cut costs, especially in the grocery store, but other ways, too. A budget is really helpful, as is a price book. Keeping track of what things cost and what you really spend or need to spend can be an eye opener! Besides keeping utility costs low, I buy things only on sale and/or at thrift stores. I seldom buy anything unless it's a real need. I cook from scratch and hardly ever eat out. Learning to manage money is a big topic!