Foundations
Managing Your Finances
Many people believe that a complicated plan is required to successfully manage their finances. The truth is, implementing a few basics can help you to get started.
Key Principles
Spend Less Than You Earn
If you find that you are spending more than you earn, you will never be able to get out of debt or save money. Commit now to start living within your paycheck and to think before you spend.
Develop and Live a Budget
A budget is an important tool that will help you balance how much you make in comparision to how much you spend. A budget can also help to cut expenses and provide more financial stability.
Save for the Future
Decide now to make saving for the future a priority. Create a savings plan and stick to it. There is no "right" way to save, the key is to be consistent and avoid spending your savings. In time, you will be rewarded.
Apply It!
• Develop a budget and begin living it.
• Start small. Save a little each month or cut out
one unnecessary purchase each week.
• Next time you go to purchase something, ask
yourself first, "Is this a want or a need?"
If you are spending more than you make, you need to re-evaluate your habits. Needs sustain life, wants sustain lifestyle. Learn to say "no" when you don't need it.
Look for opportunties to save. Consider sharing the cost of essentials with roommates. Walk or carpool instead of driving. Save spare change in a jar for later use.