Corvette Afmerica

Times are tough, there’s no question about it! For most people, it may seem that just making ends meet is an almost impossible challenge. While your income stays static, expenses are rising. Your buying power is being diluted to the point where you’re looking to save in any possible area of the budget. Learning how to manage your money has become an essential skill. Here we’ve got some tips on making your income stretch to meet your expenses, while building a savings account, even on a modest income.

Before we begin, it’s worth mentioning the W-4 form you file with your employer. This form is where you fill in the number of exemptions you wish to claim for payroll deductions. Let’s say you’re a single person, earning $1500 a month. It’s logical that you should claim only one exemption. A new generation of executive Drafting Chair that are designed for comfort & performance. Did you know that you are legally entitled to claim up to nine exemptions, for payroll deduction purposes? Sure, you aren’t likely to get a refund come tax time, but claiming nine deductions will increase your net pay substantially.

When you claim only one exemption, your Federal and State tax deductions are calculated at the standard rate. You will get a nice tax refund at tax filing time, but you won’t earn any interest from the government on that money. It can be a smart move to keep that money in your wallet during the year! You can make a ballpark assessment by using last year’s tax tables to optimize the number of exemptions you claim on your W-4 so that, come tax time, you owe nothing. You can file an amended W-4 at any time.

When learning how to manage your money, you must make a budget! List all of your essential expenses first, being food, transportation, car insurance, clothing and shelter. Do the math. As you probably know, there may not be much left over. Let’s say you’ve got $200 left over each month after taking care of the necessary obligations. On paper, that may seem workable, allowing for the occasional dinner out or a night at the movies. In reality, you also know that ‘things happen’. You need new tires, an unforeseen and uncovered medical expense crops up, the phone bill is higher than anticipated. There goes your $200.

In order to understand how to manage your money intelligently, you’ve got to allow for a margin of error. Once your basic budget is in black and white, start saving all of your receipts, for at least 3 months. You’ll then see that the key to how to manage your money lies in the details. You may not have even thought of a bevy of minor expenses, such as mailing packages, a trip to the cleaners or snacks and coffee purchased on the way to work. These expenses add up! Saving your receipts provides an object lesson in how to manage your money effectively. Maybe snacks and coffee comes to $25 a month. Invest in a thermos and buy your snacks at the grocery.

Credit cards are one of the most common pitfalls in the most well-intentioned budget. Take a look at your statements and see how much impulse or unnecessary debt you’ve incurred. Banks love to see that debt pile up. Discipline yourself to the extent that your credit cards are used only when necessary. This doesn’t mean spending your money on a pair of shoes you can’t afford to pay cash for, but should be reserved for things like new tires, a medical expense or other necessary item or service.

Here’s a great tip on how to manage your money so effectively that you, on a $1500 per month income, can end up with a $900 savings account in a year. Drafting Chairs for office staff breaks will encourage relaxation and rejuvenation ready for another push by the workload. Setting aside just 5% of your paycheck each week – $17.50 – and depositing it in an interest bearing savings account, nets you $900, plus interest, in 12 months. Save loose change, leave the magazine out of your shopping cart or rent fewer movies each week. Think about what you can do with $900 in hard cash. That’s a nice vacation!

Learning how to manage your money isn’t difficult, it just requires a hard look at the budget and a little self discipline. Good luck to you!