Over the past few years, I’ve been gathering money saving tips and strategies so that I can better handle my finances. These are the tips that have withstood the test of time, and I’m confident they will help you in your financial journey as well. I challenge you to implement at least one of these money management practices in your life. Then, return to this article and let us know how it worked out of you! 1. Spend this month’s income next month. There are two ways to budget your money: allocating based on what you believe you should have coming in this month or allocating based on the money you’ve already earned. I suggest allocating based on money you’ve already earned. Why? If you budget based on what you believe you have coming in this month, you might be wrong. What if you get sick and miss two weeks of work? What if your commissioned job doesn’t produce as much as you thought it would? I can think of 5 reasons you should spend this month’s income next month. Follow this principle, and you’ll be in much better financial health. 2. Spend less than you earn. Duh! Okay, this one is a no-brainer. If you want to make progress, you’re going to have to spend less than you earn. The bigger the gap between your income and expenses, the more money you can throw toward your comprehensive financial plan – such as Dave Ramsey’s 7 Baby Steps ! 3. Track every transaction. That’s just a fancy way of saying, “Actually do a budget .” When you are budgeting, you must not forget to reconcile every transaction. And no, that doesn’t mean simply looking at your checking account and seeing if there’s anything weird on there. Tracking every transaction means that you keep a separate record (either electronically or on paper) of your transactions. Then, every few days, week, or month, you make sure everything you purchased on your written record matches the transactions in your checking account or money in your cash envelopes. 4. Loathe debt and destroy it. When I’m in debt, I feel like a slave. The Bible confirms my feelings: … the borrower is slave to the lender. – Proverbs 22:7b NIV Follow a plan to get out of debt . Freedom is calling your name! 5. Maintain a rainy day fund. In your budget should be an expense category entitled, “Emergency Fund.” You should fund this up to a cap of 3 to 6 months of expenses. Don’t skimp on this! Emergencies do happen and they might happen sooner than you think. Notice that I said maintain a rainy day fund. It is not enough just a build an emergency fund – you must keep it fully funded. If you have an emergency, stop your investing temporarily and replenish your savings. 6. Stay accountable to your spouse or close friends. When you are trying to think of money management tips, this is probably one you would forget. But accountability is crucial to be successful in your finances. If you’re married, you both have an equal vote in what you do with your money. Sure, one person will probably do most of the accounting, but both of you have to decide where the money will go before the month begins. Have full transparency in your financial situation. If you’re single, find a buddy who will help you stay accountable to your plan. Meet once a month to discuss financial progress and bounce ideas off of each other. 7. Keep learning as much as you can. The world of personal finance is vast – there is so much to learn and many areas in your life where you can make improvements. Keep learning and building on your knowledge! Blogs like ChristianPF or my blog over at The Christian Dollar can help you stay fresh on the latest financial insights and concepts. Also, read books like a crazy person! The more you read, the better off you’ll be! What are some money management tips that have saved your finances? Meet us in the comments and let us know! Related Articles: Money management tips for beginners Frugal Money Management Tips with Limited Income Practical Budgeting Tips to Manage Your Money Better Money Mind Tricks: Ways to Save Money and Control Spending How to Start a Budget: Things I’ve Learned The Hard Way 4 Simple Steps to Proactively Manage Your Money Tips to Get Out of Christmas Debt John Frainee is a personal ﬁnance writer at TheChristianDollar.com . His goal is to provide biblical ﬁnancial principles that encourage people to live healthier lives. Beyond personal ﬁnance, John enjoys spending time with his wife and two crazy cats, playing a competitive game of Monopoly, and reading just about anything he can get his hands on. You can also ﬁnd him on Twitter and Facebook . As a thank you for subscribing to our newsletter you can download our quick eBook ” 25 Ways To Save Money in 2011 ” for FREE! The articles on this site are for entertainment purposes and should not be taken as financial advice. Please contact a financial professional for specific advice regarding your situation. Also, many of the CPF articles help us pay the bills by using affiliate relationships with Amazon, Google, eBay and others. Find out more here .
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7 Money Management Tips Everyone Should Follow