Money Management - Managing Your Personal Income and Expenses – Organization, Setting Goals, Pay Off Debts, Planning for the Future

Are you tired of living paycheck to paycheck, with no money left before your next pay period?

Are you in so much debt that you feel overwhelmed and depressed?

Are you confused about your lifestyle and don’t know how to make things better?

Have you saved for the future or a fun travel adventure?

Are you struggling, trying to figure out if you should pay for your medication or bills?

Money management involves planning, setting goals, and executing both to keep balance and save money for the future or emergencies. This planning process involves budgeting, saving money, avoiding the creation of more debt, gaining control of the current debt, and investing or saving for retirement, travel, and the future.

Money management is a mindset. You need to manage your personal income and expenses and be determined to stick with your plan and the budget you create. The temptations of subscriptions, credit cards, preapproved loans, debt consolidation, and so on will only add to the problems you already have. It may seem like an effective way to reduce or get out of debt, but a lot of times it contributes to the debt or hurts your credit score. You need to keep a good credit score to eventually get a loan for a house, a vehicle, or a place to live. You need to focus on paying off your debt and building your income for a brighter future and lifestyle.

Financial advisors, such as S.R.R. Business Services, your bank, an accountant, bookkeeper, or a financial counselor are excellent places to obtain valuable information and assistance. Be honest with yourself. Your spending habits are more than likely questionable, yet possible to improve upon. You can gain control in just a few simple steps.

Step 1

Track your personal expenses.

Know what you are spending your money on, especially subscriptions. Write these expenses down on a piece of paper or in an excel worksheet, to see the complete picture.

Step 2

Track your household income.

Know how much income you and your spouse/partner bring into the household to pay your bills.

Step 3

Subtract the personal expenses from the income, to determine how much money remains, after paying your monthly expenses, even if it is a negative amount.

By doing these three things, you are off to a good start. Now you can concentrate on planning and setting achievable goals for your budget.

Money management doesn’t need to be difficult if the organization, planning, and goals are achievable and you stick to the plan. Remember, I said money management is a mindset. You need to be determined, and you need to “want” to make your life better. This is achievable if you stick to the plan. No one can do this for you.

Money management, managing your personal income and expenses, is about making the most of what you have and using the resources to help you achieve your goals. There are strategies and tools to teach you how to manage your money, create a budget, track your spending, plan for the future, pay off debts, and establish good credit for loans in the future. You do not need to spend money on expensive software programs to prepare and track your finances. You should utilize what you already have such as your bank account, online bill pay, checking/savings account statements, a word or excel program on your computer or a pencil and paper.

Finance Management - Income - Expenses = Savings

You should “invest” your money by hiring an advisor or bookkeeper. This person will help and guide you along the way. You can call them if you need help or advice. I call the advisor or bookkeeper an “investment” for this reason. This is an investment for your future. They will assist you to get out of debt, pay off debts, and teach you how to save or invest your money for your future needs.

After you have completed the first three steps, developed a plan, and set a few achievable goals, the next step is extremely important and will serve as another guide.

Step 4

Manage your credit and credit score. This is especially important to monitor your credit, your identity, and to improve your credit score for the future. There are three credit companies that debtors/creditors report to. This determines your credit score for other lenders to approve or deny you a line of credit. These credit companies are Experian, TransUnion, and Equifax.

Credit Report, Credit Score, and Improving Your Lifestyle is Extremely Important

Experian has a program where you can connect your creditors, banks, credit card companies, financial institutions, and some bills to monitor your spending. From personal experience, by connecting these organizations, it helps to increase your credit score and credibility for lenders. Paying your bills on time or early helps to increase your credit score. Experian looks at your credit cards, loans, and other places to help you improve your score. They recommend companies and services to use, instead of your current creditors that may have a higher interest rate. Experian is a valuable resource to use.

If you decide to upgrade, Experian will connect with the other two credit companies, TransUnion and Equifax, to help improve your overall scores. Some lenders only use one of the three credit companies. By upgrading, this will ensure the lender sees your entire credit history, which improves your chances of getting a loan for a house, vehicle, or home improvement.

If you would like to take the next step to improve your finances and lifestyle and would like to work with S.R.R. Business Services, reach out to them. They would like to connect with you on a personal level. They understand the embarrassment and frustration of managing money and debt. They are experienced with confidentiality and privacy. Your information is safe, and they do not share any information to third parties without your consent. If you give them permission, they will look over your finances, work with your bank or financial institution, create a budget, plan, and set achievable goals for you to follow. S.R.R. Business Services are a phone call away if you have any questions or need suggestions. Connect with S.R.R. Business Services. You won’t be disappointed!

I hope you learned enough to start planning for the future. Money management can be difficult, but with the right help, it is achievable. Return to our posts for more valuable information and take the next step forward for a better lifestyle and future.

Thank you.