Nevada County Picayune and Gurdon Times Newspaper Archive

Living Well with Candace Carrie

The most important thing in using your money wisely is not how much money you make but how you use it. Here are 10 rules for successful money management.

1.Have a family system for handling money. Make sure that everyone in the family knows and understands it.

2. Make a spending plan suited to your income, your needs, your wishes. Don't try to follow others. Your own spending plan is the only one that will help you.

3. List your family's most important financial goals. You want to spend your limited dollars on things that mean the most to you and your family.

4. Plan ahead for the whole year. This way you have a true picture of where you are going and how well you are doing. You will also account for all of your occasional expenses like taxes and holiday gifts.

5. Estimate your income and expenses. Include all of your income. Estimate your expenses. If it is a weekly expense multiply the amount by four to determine a monthly estimate. If it is a quarterly expense, such as car insurance, multiply by four to determine an annual figure and then divide by 12 to estimate the monthly impact.

Now comes the tedious, but necessary part. Write down the name and amount for everything you spend for the next four pay periods so you have an accurate record of what you actually spend. Keep your receipts so you don't miss any item.

Compare what you actually spend with your estimates. Make adjustments so you and your family can determine what is reasonable to spend and save based on your findings.

6. As you continue to plan, involve your family. If every family member understands the family goals, they will work harder to accomplish them.

7. Pay yourself first by trying to save 10 percent of your income. If you can't afford 10 percent then start smaller, but do it regularly. If you treat it as a bill, you will be more successful. That is why you should include savings as a line item in your budget plan.

8. Stick to your plan, but do not be afraid to change your program if you think it needs improvement. If at the beginning, you fail to stick to your budget, do not give up  stay with it. You will succeed if you are determined to succeed.

9. Review your plan once a month.

10. Hold family meetings to review the progress together.

For more information on money management, contact the Nevada County Cooperative Extension Service.