The most important thing you can do when it comes to managing your finances is know where you stand at all times. When you don't know your financial situation, it is easy for it to get out of control. If you don't know how much money you have available in your checking account, for example, how can you know what to spend at the grocery store? If you don't know where you are, you can't keep things where they should be. So, make sure you are always aware of how much money you have available, and where it needs to be allocated so that it covers all of your bills.

Another important thing is to do is budget. The best way to manage your finances is to make sure you note what your obligations are, and how you need to allocate your funds to meet them all. So, you want to start by writing down all of your obligations, then figure out how much you would need for things like gas for your car, food for your house, clothing, toilet paper, and the like. Divvy out your money. Know that from your check, this much goes to this, and that much goes to that. Start by creating a monthly budget, but if you find that you are not sticking to it very well, then create a bi-weekly budget, or based on when you get paid. A weekly budget also works, as it is easier to stick to.

Next, save, save, save. If you want to manage your finances, you have to learn to save. Save money every time you get paid. The ideal thing to do is save 10% of your income. This will help you to never be in a bind that you can't get out of. Unexpected bills, medical expenses, etc. will not be as much of a problem if you have a savings. Learning to save means better financial management.

Don't rely on credit. When you turn to credit to make your everyday purchases, you are asking for financial trouble. It is easy to swipe a card, but it is not smart. It means getting in over your head, so manage your finances by not relying on credit unless you are making a really big purchase like a car or a home.

If you can do these four things, you will manage your finances, instead of having them manage you. It can be difficult, but it is worth it. It gives you the freedom you want to do the things in life that really matter. For example, you will be able to stay out of debt so that you can qualify for homes, cars, and other things that will make an important impact on your life.