Money Management

Money Management can “Stop your bank account leaking ”

How often do you say, “ I just can’t make ends meet” or “the money just doesn’t go far enough”

Money Management today is stressful for many of us. We feel pressure stretching our money to cover all the demands that are put in front of us. Monetary wise, life is more complicated because there is more choices every day on the TV, Media, Newspapers, and magazines for us to spend our money.

We can find a sale today almost when ever we want to make a purchase. If we are to stop the “bank account from leaking”, we need to understand the difference between what we need and what we want.

Money Management is a process. To start this process – list all the payments that are essential for you to make. These are the payments or purchases that would have extreme consequences if you did not make them on time.

What purchases have you come up with ?

Mortgage/rent, power, water, telephone, food, tax, state taxes or rates

Are there others that would affect your life ?

This is the group I call essentials we can add more, but we were looking for the absolute necessities. We are trying to achieve the situation of spending less than we earn. If we are to contain the money in our bank account we are trying to find the “holes” where it is leaking out. You may use you cheque account records or bank statement to help you with all these essential payments that are occurring each week or month

Now list all the other “things” you spend money on in a week. These are the items you may think you “want” – can you really afford them. Limit how much you spend on each one of these areas. Perhaps you can decide to spend money on some items once a month. Reward yourself celebrate your successes instead of purchasing these items every week. How many coffee lattes do you buy a week – are you drinking your future one cupful at a time ?

We are not trying to stop you doing the things you like. We want you to have the nice things you want. Click here if you are serious about getting "Back on Track" Each week set a goal to leave some money in the bank account for an emergency.

Carry an envelop in your purse, put all your receipts in the envelop as you make a purchase, or write the amount of cash purchases on the outside of the envelop, at the end of the week you will have a record of where you spent all your money. Each week you will clearly see where your bank account is leaking.

It is important to balance your spending every week. It is easier to think of where you have spent money over the week if you have missed writing it down, rather than leaving it any longer. If you are consistently short of money each week the only other alternative is to put more money in the bank account.

Putting extra into the Bank Account

Finding an extra job that will give you what you are short of each week. This may not be your favourite job, but if you are spending this amount each week you need to fill the “bank account” with the same amount of money. A part time job at a convenience store, gas station one or two days a week may be all you need to do to balance your money bucket.

Money management needs to look at the daily use of money and the amount of debt you have. Credit card spending still needs to be paid for. That bargain that you need today may cost you many times more if you put it on your credit card and interest is added to it month after month before you pay it off. That is not good money management it is spending beyond your means, before you can afford to.

To stop your bank account leaking, get you expenses to a minimum. Celebrate the extra money that you accumulate, and enjoy your purchases when you know you can afford to make the decision to buy it today.

If Money Management is difficult to keep you on track, work with a trusted friend who can keep you accountable. Contact your local budget advisory service for details of community based programmes. Sign up below for the "The Vault" to keep you inspired,with regular ideas others are using to make a difference in their lives