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STEP 8: Managing Money -

Action 4: Assigning Paychecks to Household Expenses

There are obviously many ways of managing money, but the key to all money management plans is to know where your money is going at all times. One of the best ways to do that is to assign your paychecks to expenses.

You have already listed your expenses in the previous step, "Creating A Household Budget", so you know what your monthly expenses are and when your bills come due.

Our next "how to get out of debt" tip is to have a look at your paychecks. How often do you get paid? If you get paid weekly, bi-weekly or semi-monthly you can create a budget around your paychecks.

For example, if you are paid every two weeks, look at your list of household expenses and see what bills can be paid on time from that paycheck. If you have allocated $400 per month for grocery shopping, calculate how much you have to spend during that two week pay period. How much can you allocate to lunches, gas, car costs as well as other monthly expenses?

This may seem like a tiresome job, and it may take a couple of months to tweak spending habits to perfectly suit your family circumstances, but it is a very worthwhile exercise.

It is important when managing money to have a real understanding of where your money goes every month and what you can afford to spend based on your household income. You don't have to do this kind of audit forever. After a while you will just know what you can spend and when you can spend it.

Many people have turned to the online money management system called Mvelopes. Mvelopes offers you the ability to track your spending and update your budget online, from any computer with complete security in place.

Having the ability to manage income, debts and spending with such precision can become exciting and rewarding. It is a handy money management tool for anyone who needs some household budgeting assistance and/or wants to pay off debt.

Traditionally for many people, money management was handled by dividing their cash into several paper envelopes. An envelope for food, another for entertainment, utilities etc. They then spent their money from these envelopes. They always knew how much money they had left to spend, and how long it had to last. Mvelopes Personal 3.5 is a breakthrough in family money management and budgeting that modernizes this same envelope concept using advanced Internet technology for today's spending habits.


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How To Plan Ahead For Large Household Expenses

How to get control of your personal budget.

Learn more about managing money in our next Debt Action Guide step that shows you how to improve your credit score.



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quote openA budget tells us what we can't afford, but it doesn't keep us from buying it.quote close
~ William Feather







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To achieve financial freedom, ideas such as: listening to good advice, learning how to make a budget, understanding credit repair possibilities, avoiding the scams, and generally becoming more knowledgeable of the credit card business, can all play a role in eliminating credit card and other debt. There is A smarter way to manage your money.





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