Take charge of debt

Just because you can borrow money doesn't mean you should. Live your life in a way that minimizes your need to take on debt. That means living on less than you make, when debt is necessary use less of it that lenders are willing to give you.

Total your monthly debt. Include your house and car payments, student debt and credit cards. Take your annual salary before taxes and divide by 12 to determine your pretax monthly income. Divide your monthly debt by your pretax monthly income:

If your ratio is under 20% your in good standing, 20-36% is a good debt load because lenders still consider you credit worthy if you're credit score is in good shape, 37-43% debt danger zone meaning your debt is higher than recommended.

5 steps to escaping danger zone:
Don't spend unless you have it
Make a plan and stick to it
Establish an emergency fund
Find extra cash-sell something
Lower your rates-interest builds quickly

Bad spending habits

*Never ever set a budget that is too strict!!Like a super-strict diet, a super-strict budget will eventually lead you to “cheat.” Start by cutting back in one area such as food shopping. 

*Stop Only using the coupons from the Sunday paper. The best price reductions are online, sign up with social networking sites, like Facebook and Twitter. Search for your favorite stores, then click “Like” to get updates on their sales and promotions. You never know what savings you might come across. For example, Old Navy recently shared a 20 percent discount code and Target offered a coupon code for 15 percent off:both via Facebook.

*Buying brand-new when there are less expensive options to be had. Free is always better!The days of heading to a store when you need something are over thanks to three big game-changers: the green movement, the economy and the Internet. Motivated by Mother Nature and/or saving money, people have being using the Web to barter, trade and even give away items they don't want anymore.

* Do not Ignore your credit score. If you don’t keep tabs on your credit score, you could be in for a rude awakening. Log on to AnnualCreditReport.com for a free credit report. Understanding your credit report will help you make better money management choices. Review your report for errors and have them resolved as soon as possible. Take note of your debt-to-available-credit ratio; if you have $20,000 in credit, you should have no more than $10,000 in debt. Cancel cards you don’t use, especially those that charge annual or monthly fees.

*Not having basic financial knowledge is a very bad habit to have. What you don’t know can hurt you. If you don’t know how to tackle your debt or invest your savings, and ignore either rather than take action: you could wind up costing yourself thousands upon thousands of dollars. Take a basic finance course at a local community college, which should give you a solid financial foundation.

*“Hoarding” money in your savings account. Big NO NO You’re not maximizing your earnings if all your money’s sitting in a savings account that earns 1 percent interest or less! Having enough cash to cover your living expenses is always important.You should be investing in order to maximize your earnings. Most people are focused on short-term survival when they need to be thinking about long-term success. Even the most conservative investments will pay more than a savings account over time.

*Carrying a balance on department store credit cards. The cons outweigh the pros when you only make minimum payments. It’s easy to get enticed by a 20 percent instant discount when you’re standing at the register, but you’ll pay for that savings several times over if you carry a balance on a department store card; most have higher-than-average interest rates: some as high as 25 percent! Also, frequently opening credit card accounts can hurt your score. Make sure to pay off balances in full, or better yet, just say no! 

*Not having a household budget. You and your partner will be more likely to fight about money if you don’t have clearly defined rules for saving and spending. Having a budget in place will help you plan better, Sit down with your partner and come to an agreement about your spending goals, such as buying a home, and saving strategies, like discussing any purchase over $100.

*Making purchases based on convenience. You’ll spend two, three, even four times as much on common household items when you make a last-minute dash instead of planning ahead. Don’t buy household items like paper towels or toilet paper by the single roll; instead, buy in bulk at a discount club or stock up when there’s a sale at your supermarkets.

save money during the holiday

1).Set a spending limit per person
2).Buy gift cards (their great gifts)
3).Make your decorations (fruit cakes make great holiday decorations if sprayed with polyurethane)
4). Family photos make memorable inexpensive gifts
5).if you buy a Christmas tree consider buying sooner rather than later
6) volunteering as a family during the holiday season can help you come closer together, count your blessings and spend a little less on gifts
7).LAST BUT NOT LEAST .....IT'S THE THOUGHT THAT COUNTS

Money vs. Relationships

Money can be the first thing to break a relationship you have to be careful and work as one. If you can't then keep your money separate. Before I got married I always made sure whatever I had or where ever I was living with that I could manage and maintain my household without that other person. Never put your all into someone to the point where if they leave you can't handle your means of living. ALWAYS PUT YOUR SELF FIRST

12 steps to getting ahead

Even if you never think about these things maybe its time:

1. Pay bills on time to avoid late fees.

2. Pay more than the minimum on your credit cards.

3. Read your bank statement regularly.

4. Build an emergency fund of at least three months' living expenses.

5. Prepare a will.

6. Shop around for the best insurance rates and coverage.

7. Look around for and switch to credit cards with lower rates.

8. Follow a monthly budget.

9. Adjust your W-4 annually to make sure you are not giving the government too much money.

10. Check your credit report annually for accuracy.

11. Contribute to a retirement account.

12. Comparison shop for the best deal on your mortgage or refinancing

More money

Most people think making more money is the answer to all their problems. I don't agree with that because if you're a person who never pays the bills on time or at all more money won't help you. More money will only help you start adding more monthly expenses until your swimming in debt all over again. On the other hand if your a person who is happy money will only bring more happiness but if your unhappy money only makes you more miserable. POINT BEING MONEY ONLY ENHANCES WHO WE ALREADY ARE!

Are you afraid of succeeding?

Many peopleare afraid of change even if it is a good thing in the long run. leaving your comfort zone can be challenging, but this is when most of your memorable moments and your biggest acheivements can happen. This is a quote out of a book im reading She takes on the world but i live by it because you cant be afraid of life and if you fail try it again.
Im bringing this up into money managing because most people feel like they failed if they dont have the money they want or need even. I say go for what u know dont be scared to live life on purpose.