Money Management Strategies
A good money management strategy will help you make the best use of your income. It's never too early--or too late--to start learning how to better manage your money.
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Considerations
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It's important to set aside money for emergencies, such as medical expenses or losing your job. Begin your money management plan by putting as much as you can afford into an emergency savings account until you've saved enough for three to six months of expenses (or a full year, if you don't have a steady job.)
Analysis
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Analyze your past income and expenses. How much have you typically spent on things like food, clothing and medical care in the past year? Adjust your figures for predictable changes in expenses and income--for example, moving into a new apartment with higher rent--and draw up a budget to balance your income with your normal living expenses and savings plans.
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Records
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Keep careful records of your unplanned expenses. You may be surprised to find how quickly small purchases, such as lunch or gas, can add up. If you find it difficult to keep track of receipts, set aside cash at the beginning of each month to pay for incidental expenses and plan your purchases based on how much you have left.
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