Five Principles of Wise Money Management

Happy New Year! Here are some time tested priciples for keeping more of your hard earned money.

1. Keep track of your money. Do you know where your money is really going? If you are like most the answer is no. This is an area I think we all need to do a better job of focusing on. When we started focusing in this area we found that our money stretched a little further than we thought.

2. Plan ahead. This takes practice but in time it can be managed. Remember Christmas is in December every year. If you start to prepare for the suprises that really aren't suprises you cut done on a lot of frustration and zero account balances.

3. Save consistantly. This is a habit and can be acheived if the other two principles are followed. Habits are formed over time so take it slow. The best way is to make it automatic.

4. Eliminate debt. Debt is the reverse of savings. Once you get rid of this monster you can move on to bigger and better things, like investing.

5. Give habitually. Those who give get. Remember that you give because it makes you more generous and compassionate. We could all use more of that.

Christmas and Giving

This year we are spending less than we have ever spent on Christmas gifts and we are giving more gifts than we have ever given. How did we do it? First we went to a book sale where we got hardcover books for $1.00 and soft cover books for 50 cents. Then we made one trip to Walmart, and for the wrapping paper and bows we went to the 99 cent store. Oh, we also made a small trip to Walgreens for some extra items.

There was no waiting in long lines, no driving around for bargains and the best part about it is we only have the wrapping to do now! Who said Christmas had to be expensive? Well, the things that make christmas really expensive are the electronic toys. But I have been told that you can get some really good deals for these items too, if you look hard enough.

Saving money should be fun. Just make a game out of getting good deals without sacrificing value.