Absolute Control: Five Proven Tips for Managing Your Money

As the economy changes and people find they are having to make do with less and less money, it becomes imperative to use creativity, organization and common sense to keep on top of money matters before huge problems develop that can easily get out of control. These five tips for gaining and keeping control over your income and expenses will help you avoid some of the financial pitfalls that can sneak up upon us during hard times.

Learn to Set and Use a Budget

No one likes them, not individuals, couples, teens or governments, yet all must learn to live within the means we provide for ourselves. You can’t spend what you don’t have and this is no longer the freewheeling 80s where everyone lived off credit with a “play now, pay later” mentality. Don’t even think of buying something you can’t completely pay off by the end of the month when the credit card bill comes due. If you’re already paying for a ton of consumer debt, you’ll have to learn to live below your means, which means you’ll have to spend significantly less than you earn in order to have some money available to pay down the debt.

Don’t Have Enough Money Each Month? Take Stock in Your Skills

One huge facet of the budget is your income. Everything begins with what you have to spend and your take-home pay is going to set the tone of your lifestyle. Don’t have enough? Then it’s time to evaluate your current skills and your current job. Are you positioning yourself for promotion? Could you learn a few new skills that would then qualify you for a new position in the same company or similar field? Talk to trusted co-workers, supervisors or managers within your company to talk about your career and how you could make changes that would not only improve the work you can do for your employer but also translate into more money each month in your pocket.

Watch Out for Cash

You know how cash has a way of disappearing, right? You get a $20-bill and as soon as you buy a cup of coffee for a few dollars, the rest of the $20-bill seems to also disappear as quickly as it appeared from the ATM. First off, you need to control how much cash you keep with you and you also need to control how and where you spend that cash. In this day and age, you rarely need cash for anything – in fact, you can track your expenses better if you use a debit card. But set yourself a limit within your budget on cash and what it is to be used for. Stop letter all those dollars slip through your fingers.

Use a Money Management Computer Program

You not only need to budget each month for income and expenses, but you also need to see where the money goes, how much you are paying in taxes, and the value of your investments. Having this contained in a computer program is a well-organized way to track where you spend, how you save and what you can anticipate in the future. It also will help you when it’s time to sit down and figure your taxes and get your paperwork filed on time.

Don’t Spend Money to Make Yourself Feel Better

You’ve heard it said that many people spend money to make themselves happy. When you’re feeling depressed (especially about money) the worst thing to do is to run out to the mall and hit the sale-of-the-week and buy unnecessary items. Instead of spending money to make yourself feel better, why not spend that time and money on getting out of debt, setting up a savings plan, or having a garage sale. Do something proactive that will help your financial situation rather than hurt it. In the long run, you’ll actually be happier with yourself, you’ll sleep better and you will start to see progress made in your financial goals.

Absolute Control is all up to you. You can decide today that you want to get out of debt, live within or below your means, and then do it. You won’t succeed overnight, but you will make your life better and you’ll be richer in the long run.