How to Develop Good Money Management Skills
- 1). Set financial goals by writing them down on a sheet of paper. Set specific one-year, two-year, and five-year goals. Determine the exact thing that you want, a specific date that you want to have it by, and exactly how much it is going to cost you.
- 2). Determine your basic needs, such as living expenses, and write them down. Write down all of your unsecured debts, such as credit cards.
- 3). Develop an envelope system for your expenses and your goals by writing the name of each expense or goal on a separate letter sized envelope. Set money aside every time you get paid in one or more of the envelopes, starting with your basic living expenses.
- 4). Stop spending money on things you don't need and stop charging up your credit cards. Make your own lunches, for example, instead of eating out.
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