Money Management Tips:
12 Tips To Make A Difference

We’re so happy to share our money management tips with you. Just over two years ago, our finances, along with every other aspect of our lives, were in a bit of mess, to put it mildly. We were forced to recover or go under. It felt very hopeless at the time. When we stopped to fully assess our situation and took a good look around, we realized that we were not alone.

A lot, and we mean a lot, of people find themselves in the same situation, which is exactly why we wanted to share these money management tips.

Many people, who are struggling financially, are bright, hard-working, and sincerely want to be in better financial shape. If so many had trouble and we had trouble, then certainly it was a problem that no one should feel ashamed about, we decided and faced our situation, which was very difficult to do. We contemplated bankruptcy, which many people do and have done, including literary great Mark Twain and third president of the United States Thomas Jefferson. Sometimes it’s the best choice for people, but we decided that it wasn’t what we wanted to do. We felt we could recover without doing so, despite it being difficult.

After deciding (so much power in that word) that we were going to overcome our present situation, we set about learning about money and following the best money management tips.

These are the money management tips we'd like to pass on to you.

In fact, it was how well we’ve done since that partly led us to start this site to help people who found themselves in less than ideal situations despite constant worrying and trying.

How did we recover? Well, it did take under two years, so there was no get-rich quick scheme. You might be able to do it in even less time. We didn’t win a lottery. No wealthy relative came to the rescue. It was all our doing and the universe’s, and that was enough to greatly improve our situation, and that’s what we’d like to share with you. It was so subtle at first that one day, we literally said, “We’re on our way to wealth.” Try these money management tips. They worked for us so well that we wanted to share them with you so that they can help you too.

12 Money Management Tips:

1. Write it all down: the good and the bad. Start with credit card debt. To start incorporating these tips, use our FREE .pdf file to help you get organized and get your credit card debt under control. These money management tips will work for you if you take control, so be sure to find out what the interest on each credit card is, how much monthly you pay in actual dollars in interest, your minimum monthly payment and your balance. Add it up: your actual dollars in interest and your monthly payments and your balance. Now, on our financial situation chart, list your assets and your liabilities. Revise this once a month. You can use a binder with four dividers: income, expenses, investments, donations, financial savvy articles/books to read on specific financial issues, for example, if you want to learn about stocks, you may want to take a look at one of the experts, like Warren Buffet. If you prefer, you can also use software for your computer, and there’s a great many to choose from.

2. Ask yourself: Are you going into debt every month or can you put the brakes on debt? If you are indeed going into debt every month, figure out how much. There’s things you can do to remedy this.

3. Twice a year, look through your expenses with an eye to trimming them. This is a way to cut the fat, rather than getting you to do without. Sometimes companies that service you regularly manage to slide in fees without you being aware of. Very popular is the service that is free for three months, then you need to call and cancel to stop it. Few people find the time or the inclination to do so. Determine if you need everything that you’re paying for. Sometimes, people pay anywhere from $10.00 to over $100.00 per month for things they don’t need, don’t use and don’t want. And for what you do want, see if there’s a package, for example, you may get a deal if you have internet, phone and cable provided by the same carrier. Be creative.

4. Tackle debt: credit card debt can be debilitating, but you can work with it to serve you. First, see if you can consolidate your loans so that there are fewer cards and only one or two payments. We wouldn’t recommend adding it to your mortgage because if you can’t pay for any reason, then you stand to lose your house. Don’t move your credit cards over to your mortgage—we don’t think that’s wise at all.

You should also call your credit card companies and ask for a lower rate. Most of them will oblige and if they don’t, look for another lower interest credit card.It’s worth searching for a lower interest even if it’s for a short while. Then you can begin paying off the highest interest card first.

5. Pay cash for everything. Don’t add more debt to debt. If you have to, have to, use a credit card, then pay for it immediately but only do this as an emergency. You can often use a credit card to book something, but use cash to pay for it when you get there.

6. Feel wealthy. Affirm, affirm and affirm. This may seem like an unusual suggestion as part of your money management tips, but it will change how you handle money and how money handles you. It might feel silly at first, but truly, it worked for us.

7. Pay yourself first. Yes, even if you have debt. To see why and how this worked for us, check back for our article on “Paying Yourself First”. Most money management tips will suggest that you clear away all your debt first, but we think paying yourself first helps you a lot. You should be putting away about 10% of your net income, but it will also work if it’s less, even as low as 2%. To get the most out of these money management tips, decide now to put away some money for yourself.

8. Get rid of clutter by donating. Money management tips include donating? Absolutely. It's all about giving to receive and allowing the flow of money to flow to you. At first, this was difficult because we had to overcome the poor mentality of thinking we might need something again, even though it was never used or used rarely. It began with books. We gave away hundreds to the library and it was very difficult at first, then incredibly liberating. Some were great books, others were not. Just because you buy a book, enjoy it and have found it useful at one time doesn’t mean you must keep it with you forever. And if you’ve never read it and makes you feel bad each time you see it, then it should be given away. It’s the same with most everything. We initially thought about having a garage sale because we’d make money. We found that there is something about donating that brings wealth. Before donating, we’d have garage sales and we made some money but not the wealth we’re building today. Donating results in something magical almost. We donate all the time: Spring cleaning is a great opportunity to do this.

9. Take time out to brainstorm about your current financial situation. Don’t panic. What can you do to improve your financial situation. Remember: do something you love and give people value. Money will come. You don’t even have to worry about it. How can you create wealth in a way that would be an absolute pleasure?

10. If you want to earn more money quickly, find a quick way to make money. We aren’t suggesting qet rich quick schemes--those are a waste of time, energy and money! People can make several thousand dollars a year more by getting a part-time job, renting out their basement, etc. Now what you do with this money is what can set you apart from your broke past. Part of these money management tips is to make room for more money to come to you, so rather than using the money to go on a vacation or repay debt, use the money instead to create more wealth in the form of passive income. If you make $5,000.00 more per year and you work part-time for three years, that’s an added $15,000.00 that you can use as a basis of a solid investment or a deposit on a home that you can use for rental income. Be creative and start earning with an eye for passive income.

11. Talk about money. Despite the openness of today’s culture from sexual topics to politics to family history, the one thing that people shy away from is money talk. That’s crazy to us. We don’t think you should directly ask someone their salary (although we wish you could) because it might make people uncomfortable and you don’t want to alienate your friends and colleagues. If someone seems to be doing well financially, ask them how they manage money. Get ideas from people and experts. If you’re working, talk to colleagues about any added perks that come with the job. You’ll be amazed at how few people are maximizing their wealth potential and also at the kindness and openness of those who are doing well financially. You can start by sharing these money management tips with your friends and family.

12. Watch your language. That’s right, please don’t talk about “being poor” as if it’s a noble thing. It’s overused and usually, incorrect. If you’re living in a developing country, then chances are you don’t know what being poor really is, and to say that you are is trivializing those who are and it is also a sure way of staying poor. There is nothing glamorous, in our opinion, about lack. And there is such a difference between being broke and being poor.

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