You have money, but your problem is how to manage money better. You know for sure that if you do not learn how to manage money better, you will end up in lots of debt. You do not want to end up this way, but you are unsure of what to do. Below are steps to how to manage money better.

Things You Will Need



Step 1

First – do you know what things you are spending your money on? More than likely, you do not; therefore, for one month, write down every penny you spend. It doesn't matter if it is a .99 cents candy bar, write it down. The reason being is that every penny counts.

Step 2

Second – now that you know what you spend your money on, it is time to streamline your expenses. To do this, get a sheet of paper. Put two headings; one heading is "necessities" and the other heading is "wants."

Step 3

Third – look at the list that you made on the things you spent your money on for one month. Take each purchased item and list it either under the heading, necessities or wants.

Step 4

Fourth – now it is time for you to be honest with yourself. You know that a necessity is something that is essential. Medicine, for instance is essential. A daily coffee, on the other hand, that costs nearly 5.00 daily is not an essential; it is a want. I know…I know…it's all about the taste, the quality; therefore, you have to get it. Okay…since you have to get it daily, what did you do prior to the opening of the business establishment? More than likely, you probably made coffee at home and were quite satisfied.

Step 5

Fifth – you have to make some choices. Either you can be honest about what are necessities and wants or continue on your pathway to be loaded with debt. However, if you have decided to be honest, let's move on to the sixth step.

Step 6

Sixth – take all the money that you were spending unnecessarily and put in a separate account. If you are not investing, then start investing with the money. Whatever you do, make sure that you are making money long-term. The bottom line is that you must manage your money. If not, your money will manage you.


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