Maybe some of you are looking for advice on what to do with your finances. Perhaps you are reading some financial books and blogs around the web to learn how to manage your money. If you are living in the US or Canada, I believe you are aware of many financial planners in your city offering services for people who want to know how to take care of their finances.
Please be reminded that I’m not a professional financial planner or adviser. I’m just a normal people blogging about the experiences I encountered and sharing it to this blog. It’s up to you if you will follow some of my advises or not and I do not guarantee that you will also achieve the same result as mine.
I think this is my best financial advice that I can give to you right now to manage your finances properly: Spend less than what you earn. It is the foundation of personal finance that I learned so far. If you can’t do this advice, you can’t also do other things like saving and investing money.
It is your duty to make this happen. No one else will be responsible for your finances except you since you are the only one who use and spend the money you have. Maybe if you have a spouse, you must talk to him/her about the status of you financial condition. It will be a good starting point where you can begin fixing your debt and other expenses you may have.
It can also be a turning point in order for you to save money little by little. The first thing to do is to list and track all your expenses by using a spreadsheet. We use Google Docs spreadsheet to list our expenses each month so my wife and I know where do we spend our money each passing month. We set a target budget each month so I know if we are over spending.
My wife and I talks regularly about our finances. Both of us should know where and how to spend the money we have especially those major purchases like home appliances or personal gadgets that we want to buy. If you are a single person, I think it is easier for you to decide about your finances since you are the only one who will do it.
There are many possible ways on which how can you spend less than what you earn. Actually, I published a post few months ago on how to make it. If you have the time, you can see it here.
You see this advise can change your life at the moment you follow it. I believe it is not hard to understand the principle because it is a straightforward message for all of us. Before my thinking is to spend as much as I can because I have my job, but everything changed because of a single event that I almost loss my job without any savings or any plan what to do.
I hope you will realize it earlier to spend less than what you earn before you experience something that’s not good like job lay off or an event that you cannot work anymore. By doing this advice, you can start saving money little by little and then if you have enough savings, you can start investing.
Image by Stuart Miles