WHY IT MATTERS

If you don’t at least try to manage your money, your finances could easily spiral out of control, adding to your worries and anxieties. Even if you have limited funds, there are several things that you can do to help you manage your finances.

 WHAT YOU CAN DO

Live within your means. When you do this, you will likely feel more in control of your financial situation and more confident about dealing with unforeseen expenses.

To help you live within your means, create a budget​—a plan that tracks your income and expenses. As you consider your budget, carefully determine your real needs. Then do your best to stick to your spending plan, adjusting it as your income or prices change. Of course, if you are married, involve your mate in any decisions.

Try this: Instead of buying items on credit, pay with cash if you can. Some find that by spending in this way, they manage their budget more effectively and even stay out of debt. Also, take the time to review your bank statements. You will feel less stressed when you know how much money you actually have.

Living within your means can be hard. But a practical, well-thought-out budget can be a big help. You may also have a greater sense of control.

Protect your livelihood. What practical things can you do to keep your job? Here are just a few: Be punctual. Have a positive attitude toward your work. Show initiative, and work hard. Be respectful. Follow the rules, and try to improve your skills.

Avoid wasting your money. Ask yourself, ‘Do I have any expensive or wasteful habits?’ For example, many people waste their hard-earned money by abusing drugs, gambling, smoking, or drinking too much alcohol. These habits can also cost them their health and their job.

Save for emergencies. When you can, put aside a small amount of money for unexpected expenses or emergencies. Such a fund can give you a measure of security should you or a family member face a sudden health issue, the loss of a job, or some other unforeseen event.