One Snarky Chica with Issues

Managing your money can be somewhat overwhelming if you do not know where to start. For most of us, the realization that we have no clue what to do in terms of managing our finances usually happens when we realize that we have a lot of debt or more money going out that coming in. And let’s face it - when you get to that point it is more than obvious that you do not know what you are doing cause how else would you have let yourself get into that place!

Well, if you are just realizing that you need a crash course in how to manage your money then this post is for you! And if you have already been at this place, passed go and collected your $200 feel free to add any additional tips in the comments.

When you realize that you need to start managing your finances better it is a good idea to first take stock of where you are and also where you want to be. That gives you a good idea of your starting point in relation to your goal. And that is what you will need to create your financial plan for your family.

Then you need to see if you can work on creating a budget. For me, this step took a few months. I started out by tracking my spending - and I mean every little cent. I did that for a few months. It helped me to realize where a lot of money was wasted. And it helped me to see how much I would need in a given month for certain things like food, gas for the car and so on. And then I was able to create a budget that was practical.

Then it is all about trimming the fat. You should try to look for places in your budget that you can trim. Sure, you just did that after you tracked your spending. In my case, I was able to trim a little more here and there. And that little bit really helps sometimes.

Then focus on paying down your debt. It is important that you pick whatever method works best for you. I started attacking the highest interest debt first. Then I moved to the lowest balance. But that might not work for you - so play around with it. And try to pay more than the minimum on at least one debt each month.

If you implement these steps you will be well on your way to getting on track, financially speaking.