Woke up in the morning, and realized that I’m broke and can’t simply go to the grocery and buy what I need. The fact is that money comes by  the end of the month, but there were more three days left to live until the end of the month. My problem lies in reconciling my gross habits with my net income… but afterwards I calmed myself that actually we did a great move in this month, we I mean me and my brother- IT geek who doesn’t cares about anything but Internet  connection. Well, what we did is, we’ve got new apartment, so I’m sure you can imagine payments for fees, deposits and stuff. The point is, now, I’m amazed that how  my parents were managing medium income to maintain the Family expenses with three kids, bill payments for water, electricity, gas, heating fees in the winter, moreover food, school, transportation for us, the list goes and goes with etc….wow

Me, being mature enough cannot budget my money, or damn salary is not good enough??? (thinking about parents)

I decided to find out the answer, and here you go, I hope information shared below will motivate to manage money not only me but you as well.

Make sure you’re in charge of your money, or your money could end up running you.

Managing your money is an essential life skill, and once you know what you are doing, it really isn’t so difficult. Once you left home, the only responsible for your financial health is you, so it’s good to know essentials.

Debts

The most important thing is avoiding unmanageable or critical debts. That means high-interest debts such as credit cards, store cards or loans that you don’t really need. Note that this doesn’t include low interest student loans, business start-up loans, or mortgages, which can be seen as a long investment in a way.

Before you start saving, spending or investing, pay off those debts. You will loose more money on high interest debt payments than you’re ever likely to make with most savings and investments – you’ll better pay off in the long run if you work harder with ditching the debt.

Emergency money

Once your debts are paid off, get yourself some money saved up for a rainy day. You really never know when you’re going to have an emergency, or need that cash cushion. An unexpected job loss, family matter, or even new interview suit can be made less of a worry by keeping some cash to one side.

Keep it in an instant or easy access account, and check from time to time that you’re getting a competitive rate of interest on it. If you’re really good at money management, you could just keep the sum in your current account, if it pays enough interest.

Ideally, if you’re working, have enough money saved to cover three to six months of basic living costs. If that’s unrealistic, just save whatever you can, even if it’s only a pound here and there. Anyone who is on a very tight budget, such as living on benefits, should concentrate on breaking even, and avoiding debt wherever possible.

Basic savings and investments

Once the debts are paid off, and you have some emergency money saved, think about some of the less risky ways to save and invest. That could be high interest savings accounts, property, pensions, bonds, and perhaps insurance, and so on. You won’t always make a fortune with these, but if you research the market and choose carefully, they have traditionally been safer long-term choices.

Taking more of a risk

This is only for people who have a stable financial foundation first! With riskier investments, you might make more money, but you also run the risk of losing the lot. This includes unit trusts, shares in single companies, and alternative investments. Don’t be greedy and get sucked in by offers of high returns, always read around the subject and do your own research before committing to a purchase.