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Managing money effectively is important if you want to be financially secure. When you take care of money, it takes care of you.

I remember being 9 years old and receiving $25.00 from my grandmother for Christmas. I thought to myself, this a lot of money. To a 9 year old that sure is. From that point on, I saved my money. One time I converted the two bills into single dollars. I counted that money over and over again as if I was a bank teller. The relationship I have with money has never changed. Usually the first thing I do is put some of it away. The rest of the money is used to purchase items. At the end of the day, I'm the only one that has money left over. If you want to handle you cash right, take these tips into consideration.

HOW MUCH DO YOU HAVE?

The first step to managing your finances is finding out exactly how much you have. You'd be surprised how people I talk to that don't know how much they have. It is sad. So, you should be aware of how much cash you are working with. This is very important. If you bring home $2000 a month, make sure you don't over spend that amount.

KEEP A MONEY JOURNAL

Now you know how much you have, keep a money journal. A journal is intended to help you document exactly how much money goes out and comes in. When you get paid, write the amount down. Make sure to include the date as well. When you purchase something, write down the item and the price along with the date next to it. Include the sales receipt as well. Do this for a year to see keep track of how much you are spending. You will be able to see whether you spend too much or make too little.

GET ON A BUDGET

Budgeting is very important. When people hear the word "budget" they often get nervous. This is because they think budgeting means restriction. This is simply not true. Budgeting your money allows to have control over your spending. When you know how much money your putting towards something it frees you from anxiety. Getting on a budget requires you to know how much you make a month. After that, list your expenses by the largest to the smallest. For example, the rent is the largest and your cell phone bill is the smallest. The rent should get paid first.

PRE SPEND YOUR CASH

Spend your cash before you get it. I know this sounds silly, but it works. This is how you do it. Get 4 to 5 white #10 envelops. On the front of each put what the name of the bill is. For example, on one put "Rent Payment". On the other put "Light Bill". Then on the back of each envelop put the amount of money you will put in there. This works. Once you get your money, you will put the amount of money you have listed on the back. Whenyou pre spend your money, you make it easier on yourself. There will be no guessing.

Overall, managing your money is very important. These are just a few tips on how to get started.

Learn more about this author, Angela Diggs.
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