Some Tips to Manage Our Money
Managing Our Finance
Manage our money takes effort, and if you do it right, the benefits outweigh the time invested. A good budget doesn’t just help you save money, it also helps you stay on track in reaching your savings goals.
Determine Our Cashflow
First,to manage our money determine your monthly income. This includes your salary, rental income from property you own and anything that comes in on a monthly basis. Next, figure out how much you spend. Be honest and track every single expenditure. Implementing a good budget only works if what you’ve set up is completely accurate. List all your spending under these three categories to manage our money: fixed expenses, committed expenses and discretionary expenses. Fixed expenses include housing, insurance, taxes and car payments, things that don’t change from month to month. Divide the sum by 12 to get the monthly cost. Under committed expenses, list utilities, mobile phone charges, food, transportation, credit card payments, children’s school fees, and allowances for parents – these are things you’re committed to.
Spend Less Than Our Earn
Take a good hard look at your expenses when manage our money. If there’s more money going out than coming in, it’s time to reduce your spending. Start with discretionary expenses. That’s usually the easiest to cut back. Perhaps you can eat out once instead of twice a week. Remember, the goal of a budget is to help you build up your savings.
A general rule of thumb manage our money is you should be saving at least 10 to 15 percent of your income after tax. As for expenses, housing is typically your biggest cost and here you should only spend one-third of your take home pay. If you’re just starting out in making a budget, you could try the 50-30-20 plan suggested by Harvard professor Elizabeth Warren. Your fixed and committed expenses should make up half of your after-tax income; 30 percent is discretionary spending and the final 20 percent goes to savings.