Steps to Personal Money Management

     Establishing a good money management system and controlling your living expenses is the very first step to repairing your credit. It is estimated that the average family spends 10% more than they earn each month. If this estimate is true, it certainly explains why people are going farther and farther into debt.

     It is our responsibility to budget the money we earn and live within our means. This is easier said than done! However, the tips below from provide an overall basis for managing your expenses. Also, in todays age there are many systems to help us with personal money management and budget our finances. I highly recommend the following budget and services software:

A smarter way to manage your money
     You can also print out and use the budgeting worksheets at the links below to help you with this process:
Worksheet 1 - Monthly Budget Worksheet
Worksheet 2 - Monthly Spending Plan
Worksheet 3 - Debt Payoff Plan

     In addition to the above and below information on Budgeting, we have arranged for you to have a FREE copy of "Money For Life, Budgeting Success and Financial Fitness in Just 12 Weeks" a detailed eBook on Budgeting. This Free download is courtesy of Author Steven B. Smith! You can download this fantastic eBook in PDF format at the link below and please enjoy this gift!

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         The following Money Management information was published and provided by on 8/23/03.

         Wondering what the steps are to setting up your budget? Here you go:

    1. Determine your average monthly income - Get out three months of pay stubs and add them up then divide by three to determine your average monthly income. Input this number into the income category of a spreadsheet.

    2. Determine your monthly fixed expenses - Gather three months of fixed expenses (mortgage, car payments, credit card payments, insurance payments, bills, etc.), these are expenses that don't change much from month to month. For each category, divide the number by three to calculate the average per month. Input these expenses into the fixed expenses category of a spreadsheet

    3. Determine your monthly variable expenses - Gather three months of variable expenses (savings, groceries, dining out, car maintenance and gasoline, home repairs and decor, shopping, vacations, children, doctor visits, donations, etc.), these are expenses that change from month to month. For each category, divide the number by three to calculate the average per month. Input these expenses into the variable expenses category of a spreadsheet.

    4. Evaluate your expenses - Review each of your variable expenses and look for opportunities to cut back your spending.

    5. Develop a monthly budget and keep yourself to it - This is for income, expenses, and investments. Input this budget into the budget column of a spreadsheet.

    6. Track all of your expenses by keeping receipts - You can also have a piece of paper that you write them down on each day. Then record these expenses into the respective categories of a spreadsheet on a daily or weekly basis.

    7. Set goals and objectives - This will help you cut down on variable expenses so that you can save and invest your money. (, 8/23/03)

    For a great money management system and service visit:

    A smarter way to manage your money

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