by Maria Papadopoulou

Created on: March 20, 2010   Last Updated: March 22, 2010

In a shaky economy like this one, learning to manage your money wisely can help you change your financial lifestyle for the  better. While it is not something that can happen overnight,  if you show the necessary self discipline and persistence, this can turn out to be an attainable goal.

How to manage money wisely

1. Decide on a  specific budget

First step you need to do is decide on a  specific budget and then learn to stick to it.  Write on a piece of paper  all your steady income sources. Mention everything, from paychecks  and alimony to  tax refunds and pension. Next to that, create a list of your steady expenses such as loan payments, credit card payments and rent.  Re-evaluate your financial management up to this point, and if necessary, decide on a different budget that will help you manage your money wisely.

2. Home

If you live on rent, maybe you can find a smaller apartment at a lower price. Or, you can try finding a roommate to share household expenses with. If you pay for mortgage,  ask your bank counselor if there is any way to lower your mortgage payments. In order to achieve that, perhaps you can extend the term for  a few more years, lower the interest rate or  even both. Either way, you will be able to save money for other purposes.

3. Car

Learning to reduce your car expenses, can put more money in your pocket. As  a rule of thumb, do not purchase a new car before 5-7 years pass. With the cost of cars rising every year and new cars depreciating quickly, it is necessary to be absolutely sure before proceeding with a car purchase. If you ultimately decide to make a new car purchase, then a good option is to pick a small model which costs less, gets better gasoline mileage, and  comes with a cheaper car insurance.

Make it a habit to change the oil and the oil filter in your car every 2.500-3.000 miles, as this will significantly reduce potential repairs and engine wear, which in turns translates into saving more money. Clean the air filter of your car on a monthly basis. That way, you will manage to increase the engine's life and reduce gasoline mileage. Another way to save money on your car expenses, is by having your tires balanced twice a year. Tires that are not balanced, or that are improperly balanced can cause detrimental damage to your suspension system, leading to big car expenses.

4. Entertainment

When it comes to entertainment, in order to save money it is important

• 1
• 2
• Next Page >>