Managing your money should be straightforward and easy to follow but unfortunately it’s far from easy.

Thats the reason many people put-off this New Years Resolution.

Does anyone remember that card called “Richards family index card” that went viral in mid-2013? Well if you don’t i included a photo so maybe it might help you understand this article a little better. Luckily though, I will not be entirely using that notecard for this article it will just be the base. I will be using my knowledge, my parents, my grandparents, and a couple of other peoples data off a New York Times article that I forgot to take a picture of, sorry.

Why:

Why should you take time to get a schedule and and a plan on managing your money? Well like it says on the card, family and community are the main ones but I’m sure there are many others.

What:

Managing money is good so when it comes to retirement, you’re all set. It’s also good when it comes to savings for your kids. The rest of the money I suggest saving for a house and the necessities for a house.

I suggest starting young. 15 is a good age to start but a lot of 15 year olds aren’t into saving money, they want to spend it of course. So if you were/are one of those types of 15 year olds then I suggest 20 years old. If you’re older than that, start now.

Everyone I asked said “start with setting up and emergency fund!” So obviously I had to include that first. Emergency funds usually include enough money for a house and insurance. Food as well but we’ll say that is part of the house category. Usually people do the general basic term insurance. Only buy a house you can afford.

For example if you have $30k saved up for emergencies and lets say all of a sudden you can’t pay for the house your in or maybe you can’t live with your parents anymore, spend about $10k-$20k on a good house, meaning no asbestos or cracked foundation. Even a trailer will work as long as you have shelter. If you spend $15k on a house thats means you have $15k for insurance, which usually insurance doesn’t cost that much but it’s your decision on what you want to do with the money. Food money is a good idea and other needs. Try not to buy to many wants.

The four basic steps to managing money to simplify things is:

  1. Buy what you need.
  2. Save what you can.
  3. Give what you want.
  4. Enjoy what is left.

Pretty simple so it seems? I suggest putting money in a bank account if you are able to get to one and do monthly checks on it, doesn’t matter how good the bank is.

I also suggest, and so do many others that every month or so tally up the big costs in your life.

For example, maybe you bought a new car and a new house in one month, pretty impressive by the way, you should add up the totals together.

Everyday I suggest, if you plan on buying something new, make a budget. Here is mine for a week:

Grocery store: $80

Gas: $80

Other needs: $40

Wants: $40

Total for the week: $240

Now I live off a part-time budget so I try and spend less than that a week. Usually I end up paying around $200 a week towards everything. Keep in mind I just started managing my money about a year or two ago. I also have no kids and still live with my parents.

Now my list may help you but it’s up to you to come up with something that suits your needs.

Now I know this wasn’t super helpful but I do hope it helped a little bit.

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