| Managing money is a subject that all of us have had | | | | write down the purchase amount and the item/vendor |
| experience with in our lives, and a subject most of us | | | | it was purchased from. It is recommended that you |
| have had to worry about as well. We've all either been | | | | only start doing this once getting a receipt is habitual. |
| in personal debt or know someone close to us who is. | | | | 3) BUY A SCRAP PAD |
| The 20th and 21st centuries have taught us to be | | | | Once you've mastered the two steps above, I want |
| consumers and the skills of the marketing gurus out | | | | you to start categorising your purchases (food, |
| there that have made us want things that we don't | | | | entertainment), and work out how much you spend on |
| really need. | | | | each category per month. This will shock you how |
| The Habit! | | | | much money you "waste" needlessly. |
| We are creatures of habit, if we take on activities we | | | | Money Management - The Electronic Way |
| do not normally do it can feel weird and unnatural, but | | | | 1) MAKE ALL PURCHASES ON A CREDIT CARD |
| as with any task we've had to learn, once we've done | | | | The biggest problem that I faced with financial |
| it a few times it becomes natural and easy. Breaking | | | | management using this method is loose change! When |
| and making habits is hard psychologically, but I'm going | | | | you keep buying small purchases with cash often you |
| to give you a little known secret to make creating any | | | | won't get a receipt, won't remember and won't have a |
| sort of habits easy. | | | | record of the purchase. THESE ADD UP! You often |
| ** To make a habit, you only need to do something the | | | | will have a large gap in your finances because you |
| same way 16 to 21 times, and then it will be set in your | | | | simple don't know where your money has gone due to |
| mind and become natural. *** | | | | small cash purchases. Make sure ALL payments are |
| If you do something ONCE a day for 3 weeks, you will | | | | done on a Credit Card so when you finally do get your |
| then do it naturally, doesn't sound so hard does it? | | | | statement you know exactly HOW you've used your |
| Money Management - The Paper Way | | | | money. |
| Whilst we are in the technology age, some people still | | | | 2) RECORD PURCHASES |
| prefer to work with pen, paper, elbow greece and a | | | | In order to truly understand how to manage your |
| filing cabinet, and I don't blame them, in some cases it | | | | money you need to record all of your purchases and |
| can be safer and easier to manage. | | | | understand any trends in your spending you can |
| 1) GET A RECEIPT | | | | potentially eliminate. The best program I can |
| The biggest trick to making this work is to get into the | | | | recommend is QuickBooks, which is a free to use |
| habit of grabbing a receipt for every purchase that | | | | relatively easy accounting program. It allows you to |
| you ever make, even if you just discard the receipts | | | | input all of your purchases into categories and run |
| when you get home for the first while, just make sure | | | | reports of where your money is being spent. |
| you get a copy. | | | | Thanks for taking the time to read this article and I |
| A trick to making this easier to remember and habitual | | | | hope you enjoyed the content, before I go I'm going to |
| is to put an unused receipt over your Credit/Debit | | | | leave you with a little tip. I follow a variation of the |
| cards and money so before you remove them to | | | | techniques shown in this article but one thing I've learnt |
| make a purchase you are reminded to ask for a | | | | for my own soul, is to NEVER do this on holiday. |
| receipt. | | | | Holidays are for family enjoyment, so do all of your |
| 2) GET A DIARY | | | | budgeting before you go on holiday and set yourself X |
| No, I don't want you to start writing down your feelings | | | | money per day, do not penny count when you're |
| like you're a teen again, for every purchase you make | | | | buying things. |