NOW---Develop a plan...Some of you may
already be committed to the credit card as a means to pay
your bills. If you are in this category, please view the
pages dedicated to using
and credit cards and ATM
machines. Identify all sources of income that you know you will receive
in a month. TIP... Develop a frame of mind that tells you that you are going to avoid paying unnecessary costs. Examples would be finance charges, late fees, parking tickets, etc. Your money is too hard to earn to give it away without getting anything in return.
However...If the total of your expenses equal more than
your income, reality sets in immediately. You are not winning,
yet! This is why we plan budgets ahead of time. By recognizing
the fact that you will be in debt if you lead your lifestyle
as you planned it, you have to make provisions to do one
of two things:
Books that may help: As simple as the above seems, it may be helpful to invest in a book that will provide information in much greater detail. Two very good books are: No matter what one's income level, this guide is still the best one around for learning how to set up a monthly budget, keep track of expenses and tax records, and save money in every area of life. Newly revised and updated, this essential guide is filled with the worksheets, checklists and charts that will help anyone learn to manage his or her money effectively.
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Outside of the area of my teaching expertise in
the field of Physical Education, is the area of
everyday living. Probably the most rewarding feedback
that I have received from former players and students
is that related to help given in establishing
a simplified method of managing money.
Add it up. So far so good. You have plenty of money, because
you have not spent anything yet. Now comes the ugly part,
list your fixed costs for the month. Fixed costs are those
that are known, in advance, that you are absolutely responsible
to pay.
Let
us begin with the understanding that, on items other than
the purchase of a home or automobile for which you will
probably be involved with taking out a loan, you cannot
spend more than what you make.
Recognize that the monthly costs that are not fixed
will give you the discretion of using it how you wish. However,
YOU must allocate (set aside, put in the bank, and not touch)
a percentage of your monthly income that will allow you
to pay your debt when it is due. Keep a calendar so you
don't miss a deadline. 
This
is how simple it is: If your income provides more money
than your expenses, you have money left over. You can
put it in savings, invest it, take a trip, or more realistically
go to the movies or maybe just buy an ice cream cone.
You are doing fine. You owe nobody anything. You
win!
2. Reduce your expenses by eliminating costs for
items that are not fixed or absolutely necessary. Be assured
that it is impossible to hit a bull's eye in every category.
You will discover that other than the fixed costs you will
be constantly juggling to use money in one category when
it is not needed in another.
