Manage your Money for Debt Free Life
Like most of general public, you may find that managing your money is an overwhelming task. But the consequences of not managing your money well can causes you to trap into financial crisis; when you are in the trap, more efforts and times are needed to get out from there.
With the enhancement for computer technology and many personal finance software have been released in the market, managing your money is no more a difficult task. The tough part is to get you started.
This article provides some information on how to get you started in managing your money. If you can't do it all at least do more than you were doing, make progress. Then when that's under control come back and add another chunk. Eventually you'll have it all working for you.
The first step in managing your money is to figure out where you are at right now. To know this, you must list down all your ongoing expenses to a sheet of paper or into your personal finance system (if you are using a software application to manage your money). You may find that listing you ongoing expenses can be more difficult than it first seems; it is alright because everybody has the same feeling.
Ongoing Expenses
Try to list every dollar you spent within the last twelve months. Can't quite remember everything? Start with the ongoing monthly expenses then add in daily and weekly expenses like food and transportation. Then focus on non-regular expenses like haircuts, birthday expenses, and vacations. Write down as much as you can. Once you have a yearly total then divide by twelve to get your real monthly expenses.
Incomes
Then, list down all your source of incomes including your job, gifts, garage sales, and income tax refunds. Once you have a yearly income figure divide it by twelve and your will get your average monthly income.
Compare your monthly income with your monthly expenses. If you get a positive result, you should glad that you have money left for saving or for other investment purposes; else you are adding debt to yourself and effort should put in place to find extra money to pay down your debt while making sure your necessities are taken care of.
Debts
List down your existing debt your owe exclude all those ongoing expenses listed above. Be sure and include all credit cards, car loans, and home mortgages. Then, add-in the loan's interest rates, your monthly payment and any ongoing fees, like annual credit card fees, and determine how long it will take you to pay them off and the total amount paid. You may be shocked to see the figures; but relax, knowing these figures now will help to have a better picture on your debt situation and get them under control.
Assets
Your house, cars, investments, bank accounts or even your cash in hand are all your assets. Assets are what your own, list them down and compare them against what you owe (debts).
Get rid of debt
Now that you have a better idea of where you are and where you are headed. There are many methods which you can implement to reduce your debt and eventually eliminate them and enjoy a debt-free life. Among the common methods are:
- Debt Consolidation
- Debt Consolidation Loan
- Home Equity Loan
- Credit Counseling
Investment
Once you have your debt under control. Next, you can start to build your wealth. This means you will have to invest it with the expectation of getting more money, returns. Your money must make more money. The safest investments have the lowest returns. The highest returns come with the highest risk. Learning how to balance your tolerance for risk and make your investment based on your risk profile.
In Summary
Effectively managing your money is the only real way to get ahead financially. You must know the flow of your money in order for you to manage it effectively toward a debt free life.
Cornie Herring is the Author from http://www.StudyKiosk.com. "StudyKiosk-Credit Basics" is an informational website on credit basics, debt consolidation and bankruptcy.
Related Tags: debt management, personal finance, debt free, money management, manage your money
Cornie Herring is the Author from http://www.StudyKiosk.com. "StudyKiosk-Credit Basics" is an informational website on credit basics and debt consolidation. To see recommended, credible lenders and loan service companies, visit: Recommended Bad Credit Debt Consolidation Services and Lenders
Your Article Search Directory : Find in ArticlesRecent articles in this category:
- Debt Settlement Programs In 2010 - Learn How To Get Your Debt Bought Out
Are you (interested in|searching for} some great information on debt settlement programs?Are you sea - Many Ways In Which A Debt Settlement Company Can Help You
Have a look at the latest figures of total personal debt in the United Kingdom. As per the reports, - Debt Consolidation Services Whats Best For You
A debt consolidation service is really a loan that is applied for to pay off pre-existing debt. Prec - Debt Consolidation Advice
If you don't know how to repay your various debts, and find your creditors chasing you for the payme - The Guide To Debt Solutions
By the end of 2009, the number of personal insolvencies that had been filed in courtrooms around Eng - What Debt Solutions Do You Have Available?
For people who find themselves in a difficult financial situation there are a number of debt solutio - Government Debt Management Help And Advice
No matter how good your money management skills are, there might come a time when you'll find yourse - Paradise Found With Debt Consolidation
Paradise Lost-Paradise Found with Debt ConsolidationIf your life and the life or your family is not - How To Consolidate Credit Card Debt?
Have you ever wondered if what you know about Consolidate Credit Card Debt is accurate? Consider the - A Very Simple Approach To Debt Reduction That Works.
Debt Reduction seems to have become fashionable and its not considered a dirty word anymore. The eco
Most viewed articles in this category:
- Help is Around With Consolidation Loans
If piling debts is a cause of concern for you, then read on to find the key to solve your problems. - Debt Consolidation Loans: it is Never Too Late to Mend your Ways
The fulfilment of desires in our lives is like mirage; the more you chase them, the more they seem t - Debt Consolidation To Avoid Further Damage To Your Credit!
So if you are beginning to miss payments or pay late and you fear your credit will get ruined, it's - Reduce Credit Card Debt by Managing Debt
Reducing your credit card debt is not easy, and requires planning and discipline. We all know that - Consolidate Debt Through a Bad Credit Mortgage
How can anything called a "bad" credit mortgage be considered good? You would be surprised that it - Debt Consolidation Loans - Bring your Finances Back on the Track
Debt consolidation loans enable one to pay off all his debts in one go. It is an option to merge all - Take Advantage of Credit Card Debt Counseling and Get Rid of Your Debt
We all know how credit card debt can creep up on us. The credit card companies are only too happy t - Time Share Your Way Into Debt
Cancun, do you want to live here for a couple weeks a year? Hey if you want to learn how come attend - Roll your Debts Into a Single Manageable Debt With the Debt Consolidation Loans
Are you deep into debt but clueless on how to get out of it? Are you losing your nerves keeping trac - Debt Consolidation - Is it Right for Me?
Many people search for a way to bring life back into their finances and relieve their ever growing