Mad Mad Money Feb 2017 | Page 11

Mad Mad

Money

The ideal situation however would be for us to have control over our money . Learning to manage money so that we do not fall under its control becomes highly important . Let us look at some ways we can do this .
BEING CLEAR ABOUT THE INCOME
The first and foremost requisite to have your money under your control is to clearly understand your income . You may be depending upon a single income or multiple income streams on a periodical basis . A clear understanding about the quantum of your income , its source and its availability time period will bring the due seriousness in you . The resultant attitude will be to exercise control over your expenses .
BUDGETING HELPS A LOT
Preparing a budget month on month can be the next logical step towards bringing your money under your control . Particularly after you have listed out your income , listing out your expenses is essential . For all you know , you may not get a hold of the expenses right on the first month . Many a times , a comparative look at the various expense heads tends to give a clearer picture . Make it a habit to maintain the expenses list which will automatically help you to ascertain the areas which drag your money away from you unnecessarily . The end of the comparative analyses acts as the beginning of the healthy budgeting process
APPLY PRUDENCE IN AVAILING CREDIT FACILITIES
Remember , while debit cards help us use our own money , Credit Cards make us spend someone else ’ s money . If this understanding is deep rooted in the mind , we will start using our Credit Cards sparingly and more so in a wise manner . Credit Cards help us buy whatever we want without hesitation . However , it is we who have to pay for the same when the payment is due . It is unwise to use the credit limit just because it has not been exhausted . Think if what you are purchasing through your credit card is a necessity or luxury which will delay your decision by a few minutes , distracting you from the final purchase decision .
PLANNING FOR THE NON- MONTHLY COMMITMENTS
One of the aspects that make many of us fall apart from our regular life is the unanticipated expenses that are irregular in nature . It is always easy to plan the monthly expenses since they are recurring in nature . Non-recurring expenses like travel due to emergency situations or Medical emergencies play a major havoc on our control over our finance . These are just a couple of situations that brings us under the control of money and there may be more . We can take control of our money if we plan for such contingencies in a well thought about manner . Living a hand to mouth existence is typically something that none of us want to experience . However , this is the manner in which most of us live simply due to lack of planning . If we live a life depending on the pay check every month , it means money is managing us from all possible directions . A little bit of planning and budgeting will change your life in a dramatic manner . Learn to manage your money or your money will manage you .
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