Updated on March 22, 2009
Manage your Cash Flow
Overspending? Does it seem as if you never know exactly where you are with your finances? Iâ€™m not going to promise youâ€™ll be rich overnight but at least take a look at the budgeting techniques that have worked for many others.
Why is it important to even take a look at your finances? The B Word is a scary, intimidating word. I have tried so many times to allocate my allowance, imposing strict limits in Excel, but not thinking twice about swiping my debit card when I find a great pair of shoes (on sale!). Iâ€™m supposed to be a numbers girl but I realize that itâ€™s been hard because I havenâ€™t seen a concrete approach to follow, thatâ€™s worked for others, and is easy to do.
I think Iâ€™d rather call it Cash Flow Management, since majority of the young people do start out with cash rather than assets and investment.
You canâ€™t really count on your income, your allowance, or your topline to increase â€“ you donâ€™t really have control over that. What you do have control over, believe it or not, is your expenses, the money that goes out of your wallet.
Weâ€™ll take a look at concrete approaches to budgeting. Ways that work and arenâ€™t just all principles or all-talk.
Weâ€™ll take a look at both envelope budgeting and spreadsheet budgeting.