by William Bond

Created on: April 04, 2010

The best way to manage your personal finances means to review your present situation, and determine whether you need to cut down on your expenses, earn more income, start planning for a retirement program, or start a debt cutting  program. You are the manager of your personal finances and once you work on the areas which need it, you will find that goal can be attained.  Here are some tips you can use to successfully manage your personal finances

Set up a budget for monthly expenses

Nothing aids an effective personal finance than setting up a budget, then reviewing it fully to see if you are getting the most out of your budget.  Review each item, and ask yourself if you can get it less expensive with another vendor, or if you can eliminate it  from the budget completely. 

Make a list of the budget, make copies of it, set up a family meeting, and hand out copies of the budget, and then go over each item, and get the reactions each family members, on the possible changes in the budget. Review the budget monthly, and never add another item on it, until you feel it will be necessary. 

Spend less than your income.

One of the key principles of successful personal finance is never to spend more than you earn.  This will mean that more income must come into your home, in order to pay the monthly expenses. 

Sometimes with medical bills, and car expenses there will be more expenses, but never rule out the necessity of taking a part -time job to be able to pay the bills.  Watch out for credit card debt.

Credit card debt can climb fast.

Many millions of people found that the unemployment during the last two years, forced them to pay bills, especially credit card payments using their credit cards. 

Once you get a job, start a debt cutting program, whereby you never pay a credit card payment of only the minimum payment.  By paying only the minimum, you will be paying that credit card off for many, many years.

Set up a schedule of payments, and get your credit card paid off, once and for all.  You can do it when you cut back in your credit card use, and you pay more each month. 

Save at your workplace. Saving at your workplace means putting it into a 40l(k) plan. The most important decision you can make for the good of you and your family will be to start a 40l(k) plan at work, if you don't have one yet, go to your personnel department at work, and ask to sign up for your own 40l(k). 

You decide on putting a percentage of your pay each week into your account, let's say you earn $l,000 a week, and you decide on a l0% contribution; that would mean you put into your account $l00 a week, or $5,200 a year($100x52weeks=$5,200). 

If your employer pays into your account a matching l00%, then your yearly contributions will be $l0,400(2X$5,200=$l0,400).  You are not taxed on what you put into your 40l(k) plan, and it can grow tax deferred until you take it out.  Let's sum up.

Keep an emergency fund of 3-6 months of your income into a savings account, to pay for dental and medical bills that you need to to done, but these are not covered by your medical insurance, or you or your spouse get laid off, or you need  car repairs on your car, to get a inspection sticker.  Monitor your budget regularly, and be willing to work a second job until you get your finances in the very best condition. You have everything you need to succeed, and you will.  You can do it. Go for It! 

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