Allowing someone else to manage your money can lead to unwanted debt, little freedom to use the money as you see fit, or a loss of financial acumen about how to handle finances. These outcomes could make you more dependent on the person managing your money, which not only makes it difficult to leave an unhealthy relationship, if needed, but also has the potential to create difficult position should that other person no longer handle the finances (e.g., due to severe illness or death). Experts say your total monthly long-term debt payments should not exceed 36% of your gross monthly income (i.e., your income before taxes, health insurance premiums, etc. are taken out). Long-term debt includes your mortgage, auto payments, student loans, and of course, credit cards.  If you exceed 36% of your gross monthly income, create a plan on how you will pay down the debt, starting with the credit lines with the highest interest rates. Possibilities include transferring balances to a lower interest rate credit line, re-designing your monthly budget to allocate more funds to debt servicing, or consolidating debt into one payment with a low interest rate. For example, if you own your own home and can re-finance, it may be possible to use the equity in your home to pay down your debt without opening another line of credit. While you pay down your credit cards, resist the urge to add more to your running total. The only way you will get out of debt is to squash the debt you’ve generated in the past. While you are paying down debt, if you don’t have the cash to cover the costs, skip the purchase.You could also use a debit card, which is equivalent to paying cash. Try not to borrow a friend or family member's money either. Make it easier to pay with cash by keeping a stash on hand at all times. However, make sure you keep your cash in a safe place. Also, make sure to build up plenty of savings so that if unexpected expenses arise (as they most likely will), you can pay out of savings rather than taking on more debt. Think about savings as a way to make a 0% interest loan to yourself. For this reason, sometimes it makes more financial sense to save rather than pay down your debt. Building credit and equity by owning a piece of property is still one of the best ways to become self-reliant and build wealth. Leases can lock you into a living situation you do not like and landlords can change the terms of the lease when you renew, which may force you out of a living situation before you want to change. When buying property, search for homes or condos within your budget (meaning you don’t want to take on a mortgage payment that exceeds 28% of your monthly income). Create a monthly budget and stick to it. This is possible if you are honest about your expenses and build in allowances for unforeseen expenses. If you don’t know where your money goes each month, go through your living expenses (rent/mortgage, utilities, insurance, taxes) along with how often you eat out, what you buy, gas purchases and entertainment expenses.  A sample monthly budget may look something like this:  Mortgage/Rent: $1,000 Car payment: $400 Gas/Electric: $200 Water: $30 Cell Phone: $100 Television/Internet: $100 Food: $800 Entertainment: $150 Homeowner’s/Renter’s Insurance: $300 Health Insurance: $300 Car Insurance: $100 Gas for vehicle: $200 Child Care: $600 Credit card payments: $200 Other Expenses (may include child support, alimony, activities or classes, property taxes, or additional utility services such as trash/recycling pick-up or a “land line” telephone bill.)   Seeing the expenses as compared to your monthly income on paper may create more of awareness about what you can and cannot afford. This gives you a chance to talk to people with whom you share money and set expectations about how money should be managed, which keeps you involved and more self-reliant.
تعلّم كيفية إدارة المال. تخلّص من الديون. ادفع نقدًا بدلًا من استخدام بطاقتك الائتمانية. احتفظ بالمال في حوزتك في كل الأوقات. امتلك منزلًا. عِش ضمن حدود إمكانياتك.