Ultimate Money Guide

I've been thinking on what to post here this time. Since I need to evaluate what is my weakest point this year, I decided to write about Ultimate Money Guide based on my favorite magazine, Marie Claire. Yes, I'm not good in money management. Although there is improvement this year, I still want to hit my target-complete my homemaking wish list. I want to remodel our house. I want a functional kitchen. I want to save more for future expenses. I want to save for our insurance. There are so many things to do.


I'll just pick up the Ultimate Money Guide I could grasp from the magazine. Join me in checking our evaluation on these items.


Develop a simple personal statement of assets and liabilities. I'm talking here of net worth. Net worth is the difference between our estimated amount of liabilities and our assets. It determines our financial health. In order to do our personal statement of assets and liabilities, we just need to write in a notebook our sources of income in one column and our expenses in another. The clue here is just to make it really simple.


Track our expenses. This is essential because its our way of gauging if we live within our means. If we discover that we spend more money on things we can live without, we must do something to change it.


Create budget. On my part, I create weekly budget, yet I'm not able to follow it. However, this is alright as long as I did it on balance. It's important to be realistic here. Our ability to balance and project self-discipline matter.


Debt management. Talking about credit cards isn't avoidable here. If you own a credit card, it's like you declare that you owe company money, right? But this is not bad, as long as you're good in debt management. There are three things to do when in comes to debt due to owning credit card. First, pay with cash if you can. Second, pay off the card that charges the highest rate of interest first. It's one way of reducing your debt. Third, be disciplined. Remember, credit cards are not bad to your finances if used properly. Buying assets through your card is good.


Savings and investment. It's important to exercise caution in using savings money for investment purposes. Also, the "save then spend" process is still helpful for proper money management. Right now, I have a separate savings for kitchen renovation at home.


Finally, we'll write our money mantra. You can write your own money mantra too. It's up to you. Here's mine.


I will seize every opportunity to save money or invest it when the time is right. I will eliminate severe debts. I will walk away from a store without unnecessary expenses. I will continue depositing in my "untouchable" savings account. I will not be selfish because of money and any money problems. I will think about these words: A big part of financial freedom is having your heart and mind free from worry about the what-ifs of life. Thanks for reading about Ultimate Money Guide. Share your comments!

Ultimate Money Guide

Merry Christmas and Happy New Year from: