There are lots of blogs, websites, and the like dedicated to how to manage your money. With the current situation this becomes even harder than in the past. It also makes it more vital than ever before for you to get control of your finances.
Like I stated before there are tons of material written on how to control your finances, but this does no good if you do not educate yourself about what to do for your situation. There are some books that most suggest, but I have personally started with Rich Dad, Poor Dad, Robert Kiyosaki, explains things in a simple but understandable way. I have personally employed some of the teachings. Art of Manliness also has a good list of books to help start you off with some education about the way money works and ways to have your money work for you.
Get Control of your Finances
This is something I hate to do, but it is a must, to start to get control of your finances. You have to sit down and write out all of your debt, income, and any investments (401K, Retirement, IRA’s) to figure out where your money is going. Without doing this you will never know where you are and how to get where you want to go.
Make a Budget
Most online banking today gives you a free budgeting tool to utilize to help you get control of your finances. If it doesn’t you may have to sit down and write them out. If you are really honest on where your money is going, it can tell you the story of why you may be spending more than you need to. AmericaSaves.Org has some creative tools on how to start with a budget if you need additional help.
Living Below Your Means
This may sound like a no-brainer, but you cannot spend what you do not have. I do not advocate buying things with credit unless it is an emergency. Credit card debt is one of the highest interest rates and the hardest to pay off. This is a non-negotiable in our house if you can help it. There are other ways to get the things you need, rather than the things you want. If you can live below your means, then this will mean you have some extra budgeted in for the next step.
This is a must to start as soon as you can. Your budget should show you were your money is going and ways to cut costs. Then you can do as Dave Ramsey suggest and create an emergency fund of $1,000.00. From there you can start to pay yourself first and start investing.
All of us are different and in different stages and situations in our life. There is no one size fits all when it comes to finance. Unless you educate yourself on what you can do, how to do it, and begin you will find yourself behind the power curve when it comes time to retire.
I am always interested in other ways to continue to educate myself on managing my finances. If you have some other suggestions please leave a comment below. Also, leave a comment about other subjects that you would like to see in the world of finance.