Managing your money is the one aspect of working that should make sense. After all, you spend a lot of time earning the funds.
Everyone who advise about getting financially healthy, screams “Manage Your Cash Flow.” In a nutshell, all that means is deciding where your money goes.
One of the simplest way to begin is to have a minimum of two bank accounts that have no fees. One account is for expenses and the other is for your personal spending.
When your pay is deposited, 50% of all monthly expenses should be put into one account (i.e., rent/mortgage, car note, phone bill, etc.), also include investments. Treat all savings as an expense, because the funds will not be available to you until needed. By doing this, every paycheck (using the 26 checks per year example – bi-weekly) deposited into the account makes it easy to have the bills covered each month when the money is due; and will also help to create an emergency fund with money that is not spent, especially when you are not making much.
The money you designate for yourself goes towards your personal use. It makes sense for your partner and children to have personal accounts of their own so everyone is not tapping into one discretionary account. It is easier for everyone to know how much money they have left.
