Managing your money is a tough task to handle, if you haven't developed the mindset yet. If you are overwhelmed by the seas of debt, concerned about the future, or just want to create financial independence for yourself; then here are some thing you should know. Money management takes preparation, practice and discipline. Here are things you should do immediately to master your personal finances.


Know how much money you are spending every month. Often times we spend a lot more money than we realize. We take a look at our paychecks and bank accounts, asking ourselves "where did it all go?" A simple thing you can do right away is to carry a small notebook with you. Each time you spend money on something write it down. At the end of the month examine the list. Categorize your list and tally up the numbers. You might end up surprising yourself the amount of money that was spent on the unnecessary.

Once you have tracked your expenses, it's time to trim the fat. What are you spending your money on that isn't essential? Perhaps you make a Starbucks run every morning. Instead you could take a thermos of coffee with you to be more cost effective. Go through your list and cross out the unnecessary.


Create a monthly budget before the new month begins. List out all the necessary expenses you have. Don't stress about it too much, if you don't get it right the first try. This will take a few attempts to get it down pat. Stick with it- perseverance does pay off.


Once you have mastered making your monthly budget, it's time to go full tilt on mastering your money with discipline. Two areas to focus on discipline is spending and saving. An excellent tool to use to control your spending is the envelope system.

The envelope system is the use of cash for various areas that fluctuate such as food, clothes and entertainment. You designate an amount of cash to go into each category with a separate envelope. Once the money is gone, no more spending. What is really great about this strategy is that it causes you to become more thrifty and resourceful.

Everyone needs a reserve set up for those just in case moments. Building an emergency fund of six month's worth of living expenses is a wise idea. Better to be safe than sorry. Set up an automatic deposit to a savings account from your paychecks. Contribute 10 percent of your income to begin building your reserve fund.

Begin practicing these three disciplines to master money management. Prepare by listing out your monthly expenses. Practice working on a monthly budget. Discipline yourself on spending and saving. Before you know it, you will be a master of money!