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5 Steps to Better Money Management
By
Judy Lawrence
Are you
drowning in credit card debt? Having trouble setting and sticking
to a budget? The following tips and tools will help you learn
to manage your money more effectively.
1. Write
your Financial Goals
Writing
down goals and then reviewing them daily or at least monthly,
is historically the key distinguishing action step of financially
successful people.
| Do
you want to reduce or eliminate debt? Total
up your debt so you know the exact amount
you want to pay off. Write this on your list. For
example, “I am debt free - my $8500 credit card
balance is now paid off.” |
|
Is it time to build up a savings account?
Add this to your list. “I have $10,000 in
my savings account and add to it monthly”. |
| Are
you ready to simplify and organize your finances?
What would that look like? One place where all your
financial papers and bills are filed? All bills being
paid automatically online, through bank withdrawal,
or regularly on your credit card to build up miles?
Of course the bill would be paid in full each month.
Then add this to your list “My finances are
organized - statements and bills are all filed in
one place and all bills are effortlessly paid online.” |
2.
Make a Money Management Plan
What
following action steps would help you start to gradually
eliminate debt and build up your savings? How can you make
these action steps motivating?
| Outline
a total spending plan for the month
ahead to cover all anticipated bills and general expenses
(think “latte” and “snacks”).
Stick to that plan for the entire month. |
| Set
up automatic savings from your paycheck. |
| Call
all your creditors and negotiate for a lower
interest rate. |
| Eliminate
all wasted fees from: non-bank ATMs, banks,
credit card cash advances, late payments, over the
limit, credit card annual fees. |
| Review
all your regular accounts (phone, insurance,
cable) and explore lower rates. |
| Pick
and choose areas to cut back or eliminate
spending (beverages, fast food, electronic
gadgets, CDs, books, prime time movies – don’t
forget the popcorn) |
| Explore
“cheap is chic” ways of cutting
back but still having what you want. |
| Consider
ways to leverage your special skills with computers,
tutoring, music to bring in extra cash. |
| Take
the time to research refinancing your car
or home for lower rates. |
| Track
your spending and notice where your money
is going. Is this spending in alignment with your
New Year’s resolutions and your spending plan? |
3.
Find Tools that Work
Whatever your learning style is, there are now tools and
resources available to match your style and guide you more
efficiently through the financial maze.
| Participate
in a classroom with other people
- look up Community College, Adult Ed or Learning
Annex classes |
| Sit
in on a seminar or webcast, or even
watch and instructional video |
| Read
a book, articles and other written materials –
The Budget Kit is one practical hands-on workbook
among many in the “personal finance” section
of bookstores. |
| Use
tutorials or software on the computer
– Mvelopes Personal provides a comprehensive
online money management system. Or, there are numerous
software packages available. |
| One-on-one
with financial professionals –
financial planners, budget counselors, instructors. |
4.
Follow Up and Follow Through
How will you know you are on track, sticking to your resolution
and making progress? Back to the road trip analogy –
Notice there is always a sign letting you know you have
just left one state and are entering a new state.
| What
day will you regularly review your
progress? |
| What
specific dollar amount do you plan to save
each month or apply to debt? |
| Do
your bank and/or credit card statements
reflect your efforts and determination? |
| Is
there a date and time set aside when you will take
time to organize your financial papers,
set up your online bill pay system? |
| If
you got off course, what action will help
you get back on track? |
5.
Get a Budget Buddy
Designate someone to be your budget coach. Is there a buddy,
family member, counselor, financial planner, colleague,
or a member of your church that you can count on? A budget
will be your cheerleader, give you the boost when you feel
tired, and help you from feeling overwhelmed. When you meet
with your budget buddy, you can compare and discuss your
results. They can guide you as you make any necessary adjustments
– whether in attitude, emotion, or financial - to
recalibrate your next steps and stay on track.
You
have the power to change your life! You can do it. As Winston
Churchill once said: “Never, never, never give up!”
 About
the Author: Judy
Lawrence, MS.Ed. is a Budget Coach and Counselor in Silicon
Valley. Her book, The Budget Kit: Common Cents Money Management
Workbook 3rd Edition, has sold successfully for over two
decades. If you would like a 30-minute free phone consultation
or just find out more about her services and books, you
can reach her at www.moneytracker.com
or judycents@aol.com
or 1-800-283-4380 (1-800-Budget-0).
Webmomz Recommended Budgeting and
Money Management Books for Parents
 I
just LOVE the Budget Kit by Judy Lawrence. It makes
money management EASY! The simple worksheets for monthly
and yearly budgets, monthly expense records, and gift records
makes it easy to track and manage your money.. If you have
credit card debt, you'll love the "Debt Pay-Off Chart".
It helps you track your progress while you pay off your
debt and move towards financial independence.
 Are
you financially challenged? If so, you'll find The
Money Tracker by Judy Lawrence to be a life saver! It
is PACKED with money-management strategies, 60 week-at-a-glance
logs, user-friendly financial worksheets, and inspirational
success stories. This book helps you to understand and FIX
your emotional spending issues with a special Splurge Diary,
Victory Diary and Alternative Activities (to spending) worksheets.
A must read!
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