How to Manage Money Better

Nowadays, everyone is looking to either stretch or add to their dollars. With a little planning and patience, this can be done.

Difficulty: Moderate

Instructions

Things You'll Need:

• A clean notepad to be used only for money matters
• Small calendar
• A filing system to maintain payments made

1. Make a realistic financial goal. Use your notepad to determine how much of your take home pay can be used to pay down bills. Don't forget to leave extra change (a.k.a. mad money) for emergencies or other surprises that may come up.

2. Take all of your bills and separate by occurrence (one-time, ongoing). If this does not apply, then separate by the amount to be paid.

3. Go through each ongoing bill (such as credit cards or utilities) and find out how this can be reduced. For example, most utility companies offer reduced payment programs for low-income households; or remove premium packages from your cable service if you can't do without just yet.

4. If you are paying off a loan or credit cards, separate by interest charged. Find out how much payment is needed to reduce your annual percentage rate.

5. If you cannot negotiate your interest, then draft a plan to realistically reduce your highest balance by at least 50% in six months (or less).

6. If you find that the problem lies in overdraft fees, contact your financial institution immediately about using your savings account as a backup. This service may be free or about one-eighth of an overdraft fee.

7. As far as food goes, you don't have to starve but reduce or eliminate eating out altogether. Buying in bulk will also make a difference. Unless you are on a carb-free eating plan, potatoes, rice and pasta are excellent low-cost meal stretchers or can be made into a meal by themselves. Beans are good,(though the "music" can be something to deal with).

Tips & Warnings

• Walk to your destination whenever possible or consolidate your errands so as to save gas
• Barter any professional services that you can offer
• Create a checklist of your financial accomplishments and reward yourself modestly
• If you cannot add a part-time job to your schedule, find ways to work on-call or start a small business that will allow flexibility.
• Some cable channels can be seen for free with digital converter boxes.
• There are many unscrupulous individuals and companies looking to scam those affected by today's recession. Do not give them any money unless they can guarantee results and your debt is so large (more than $10,000) that you cannot handle it alone.
• Communicate with your debtors before making any radical moves.
• Reduced utility programs have guidelines by which to screen applicants before they can participate.

Resources

• For part-time and on-call employment

[silly1999]

on 9/4/2009 Really good ideas!

[Foxility]

on 8/11/2009 Great tips. thanks

[bunnyknitter]

on 7/19/2009 thanks!

[NuttyMomma]

on 7/16/2009 thanks for your timely tips!

[nick582]

on 7/16/2009 great article. thanks