Tip #1: Spend less than you make
Everybody knows that if you want to get a handle on your finances and figure out how much money you actually have then you have to spend less than you are earning right? Well, the smart ones do but there is more to this statement than this simple phrase. Spending less than your monthly income means that you have to keep track of all the credit cards too. If you're using a credit card, you're going to have to pay for your charges from something and if you get to the end of the month and can't pay the maximum balance on the card then you're overspending. Spending less than you make requires constant effort on your part to balance and keep track of your purchases.

Tip #2: Cut the Credit
I know this isn't the first time you had someone tell you to get ride of the credit cards right? If you have any chance of getting a handle on your finances you have to stop using the credit cards. It may be drastic to tell you to cut them all up because you might need one for an emergency, but you will find that once you have a handle on your finances you don't need to use the credit card because you will have enough money saved for those "emergencies." So don't yourself a favor and get rid of all the credit cards.

Tip #3: Make a budget
Budgets have sometimes been referred to for people with "no money." The fact of the matter is, it doesn't matter whether you're filthy rich or dirt poor everyone needs to have a budget. If you don't have any idea where the money goes every month then sit down and figure it out. Divide your budget into different sections for where you spend. For example, some of your sections would be:

• Food money or Groceries


• Mortgage payment (if you have one)


• Car payments

These are just a few of the things that you should include within your budget. Figure out how much money you bring home monthly or bi-monthly and try to distribute the money evenly. Make sure you account for every last penny

Tip #4: Save
If you want money for a rainy day then you're going to have to plan on saving some of it. A good general rule of thumb is to try and save about ten percent of what you make a month. So if you make $4000 a month then put at least $400 of it into a savings account. You'd be surprised at how quickly it adds up. Another general rule of thumb is to always have at least $1000 in a savings account for any type of emergency that comes up. This will help eliminate the need for credit cards. Practice some self discipline; quite go out to eat and save some money.

Learning how to get a handle on your finances doesn't have to be rocket science. You do however need to have a little self discipline and some long term goals to reach. Financial freedom is possible and these few tips will help you get started.