Tips on how to manage finances wisely?

Public Comments

1. Stay out of debt. Save money.
2. On a monthly basis - do not spend more than what you earn.
3. Buy Microsoft Money.
4. Keep a diary of every penny you spend for a few months, then you can analyse your spending and create a workable budget.
5. Create a budget Simplify your living expenses Get out of debt and stay out
6. Interesting that you say "manage finances" instead of "build wealth" or "achieving financial freedom". There are 100s of tips to help manage finances, like budgeting, carrying less cash/credit cards, eating out less, spending less on entertainment/luxury items, downshifting to cheaper brands & vacations, buying secondhand and not new, etc. IMO, cutting expenses & costs as much as possible is the most important thing. But I think it's more important to get into the right long-term frame of mind, the "build wealth" state of mind. If you really want to build wealth, you're going to have to go on a strict financial diet (that's how it'll feel for first-timers), and that takes a clear, disciplined willpower + mental attitude. You're going to have to cut the financial fat from your life, and it might not be easy at first, since you're probably used to having the fat of all your expenditures. Clarify your financial goals (financial security/freedom, etc.) and remember them every time you make a purchase, asking yourself, "Is this really necessary for my life? Do I need this to live?" Usually, that answer is no. If having little or no money in your bank account worries you, then which is more important, the new pair of shoes or the extra $50? All the little things add up, not just in life, but also in your bank account. It might seem scary and painful in the beginning to cut costs, but actually it's about discovering and getting back in touch with what's really important in your life - your friends, family, yourself. Because hey, when you cut back spending on all fronts, you're basically just left with your raw self and your relationships. If you go without spending more often, you'll find that you'll end up having more, and being more. What you lose in spending, you'll gain not just in your bank account, but also inside yourself - less worry, less stress, less needy, more clarity about what's truly important in your life. And of course, being financially richer.