Track Your Monthly Finances

 The very first step in effectively managing your money is to establish a budget. This is the only way you will ever be able to fully take control of your finances and create a way forward.

 Step 1: List All Your Income Sources

You need to establish what you are earning by month, so set up a spreadsheet from January to December and write underneath each month what your income is and from where it is derived. This could include your salary, child support, government support or investment income.

 Step 2: List All Your Regular Expenses

Again, by month, write down all your regular expenses including gas, water, electricity, council rates, car insurance, petrol, groceries, health insurance, home and contents insurance, haircuts, school expenses etc.

 Step 3: List All Your Additional Expenses

This is when it gets a little tricky and you really need to monitor what it is that you’re spend your extra cash on, often without thinking. This is where your loose change is being used. Things like coffees, lunches, magazines, make up, birthday presents, clothes, underwear, shoes, iTunes, Spreets, and numerous other items that will form part of your additional expenses. Be realistic and work out what you think you spend in a year per item and then divide by 12 and allocate a set amount per month.

 Step 4: Deduct Your Expenses from Your Income

 Add your regular and additional expenses together, by month, and deduct from that month’s total income. Then you’ll be able to see how much you really have left over per month. What you may be shocked to find is that you are actually spending more than you earn. It is not uncommon, which is why so many families do it hard. But you don't have to! All you have to do is readjust your additional expenses and either reduce them or add them to a savings plan per month. Either way, you will be moving forward.