Would you like to have more money in your pocket? Would you like to know how to do it? It is not hard; it is all a matter of organizing your finances.
Everyone has expenses, some have large expenses and some have smaller expenses.
It doesn't really matter how much you earn - expenses are the results of our: wants and needs.
For managing your expenses you have to manage your wants and your needs and control them in order to be in control of your expenses.
Your needs are usually your living expenses like rent, mortgage payment, electricity, tel, etc.
You have to control your needs in a way that they will be controllable.
Not every need we really need.
We consider many of our needs as a must but the reality is that we can do without them or we can economize, a good example is the cell phone; once you have a cell phone you can not do without it but you can control the cell's bill; You are in control of how much you talk on the phone.
Many times we think that we must have all our needs but if we will stop for one moment and ask ourselves the most important question: Do I want it OR do I need it? And think for a moment - we will identify for ourselves if we just want this item or we really need it.
The same question should be asked when we spend money on our "WANTS": Do I want it OR do I need it? Everyone can manage and reduce their expenses; it is all a matter of"wants".
We are living in a society of abundance, we have much more than we need.
Actually we don't need too much, there is a saying that says: you can't seat on two chairs.
But we still acquire much n access of what we need in every area of our lives.
The best way to manage your money is to have a written financial plan.
A starting point for a financial plan is preparing a plan for the next month.
Start with one month at a time.
A financial plan shouldn't be a complicated thing.
You can do it with paper/pencil, a word document or spreadsheet, the main point is to get it down in writing.
The first financial plan will take a bit longer, just to get all the information of all the expenses but the next ones will be quicker.
The ideal is to plan your finances every month or two.
The two main columns in the financial plan are: Income and Expenses The income column should have all the different incomes: wages, salary, commissions, and other income.
The expenses column should have all expenses listed in categories and sub-categories: Housing expenses (mortgage payment, rent etc), everyday living expenses (electricity, gas, internet, phone, credit card etc.
), medical expenses, transport expenses (car loan/lease, gasoline, repairs, bus/train fare, parking etc), insurance expenses, children expenses, clothing expenses, pet expenses, taxes, entertainment (movies, videos, books, gym etc.
), grooming (haircuts, manicure, cosmetics etc.
), holiday expenses, savings and unexpected expenses ( gifts, dentist etc.
).
To assemble all your expenses amounts you should check all your bills, all amounts that are charged on your credit card and all receipts you might find.
As a tip for a good housekeeping : collect all your receipts for goods paid for with cash or items which are paid by credit card, in order to know exactly your expenses.
The next stage is to compare the two amounts: the total of the monthly earnings and the total of the monthly expenses.
When you have the two amounts displayed, it is displayed to you and you can see if you live above your means or below your means.
If your income is greater than your expenses - you live above your means.
If your expenses are greater than your income - you live below your means.
That is the point where you can see each of your expenses and decide which expense is necessary, which expense is only a want and the most important is how to plan your finances.
You are on the right way to your financial freedom...
Edna Ferman http://www.
theekgmethod.
com