by Alexandra Grose

Created on: February 02, 2009   Last Updated: February 22, 2009

Better money management is a choice. It doesn't matter what you think you deserve, or how much you'd like the item you're thinking of purchasing. No one is more interested in your money than you are. The sales person is interested in making the sale, not whether you can afford the purchase.

In the end, your finances are your responsibility. No one's going to come along and get you out of the hole you've dug yourself into, but you. Once you realize that the only one who an fix the mess your in is you, then you are on your way to making better, smarter choices with your spending habits.

There are many ways to better manage your money. There's the usual; pay your total credit card debt within the month, don't buy what you don't need, cook your meals, rather than eat out. However none of this helps us make the right choice at the time.

People don't always do what's right. People do what's simple, fun and exciting. Spending covers all of these. Saving is boring and humdrum. No excitement there. A better way would be to make saving fun. Do what you need to do, to make saving fun and exciting. Make the mental shift between boring and fun. Change your perception of what saving can mean to you and you'll change your habits concerning spending and savings.

Imagine saving just $1000. Put that $1000 to work for you, in the form of interest generating income and you could spend the profits. You'd still have your initial $1000, plus the item you've purchased. O.K., right now interest rates aren't at their highest. So think of the excitement you're going to have shopping around for the best interest deal. We all love shopping. Shopping for interest is just another, better, form of shopping.

If you want to buy a cd for example: interest at 6% a year could buy you 2 cd's from your initial $1000. That's out of money you haven't had to work for and you still have money in the bank. Look for ways to make money rather than spend money. Your elderly neighbour needs her lawn mowed. It only takes half an hour and there's a few more dollars for you. Now you can buy tea, without spending money that's delegated to something else. Perhaps you could also use this money to invest.

Ask your boss to deduct even as little as 1% extra, to put towards your superannuation. You won't miss this from your take home pay and many of you will be surprised and glad at how it will add up, by the time you need to use it.

Looking for ways to earn and keep money can be fun. Have a picnic with food prepared from home and take your children to the beach or a park, instead of having take away. Put the money you save from doing this into an interest bearing account, or pay down some debts with it. You still get to go out and have fun, but without the cost.

Pay debts with the highest interest first. Or pay your smallest debt first and then work up to the bigger ones. The money saved from each debt that's paid off can be added to the next debt. You'll find that very quickly your debts will come down, and eventually the money you are saving will be yours.

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