Take Charge of Your Money

When it comes to money, you're in the driver's seat, and it is up to you to manage it.  Where does your money go? Do you let it slip out of your hands or do you control where it goes? During Financial Literacy Month, try to take charge of your money to achieve your goals to get from where you are to where you want to be.

If you want to control your money, first distinguish between "needs and wants," consider your values and goals. It is ok to have a list of "wants," we usually don't have enough money to pay the bills and purchase all of the things we want. It becomes necessary to cover basic needs, then prioritize those "wants" and make a plan to acquire things one at a time.

You can spend less and save money by following a spending plan that covers fixed expenses, flexible expenses, funds for emergencies and future goals. Additionally, expenses can be cut by shopping with a list and do comparative checking before you make a purchase. Look at flexible spending categories, such as food and clothing and find ways to cut back, then direct the difference toward savings or paying off debts.

Spend less by taking care of what you already have. For example, the price of gas and transportation takes a sizable chunk out of our budgets. Stretch your transportation dollars by keeping your automobile in good shape. Get regular maintenance and service checkups; use your car owner's manual to plan maintenance. By taking care of your vehicle, it will last longer, and you delay the need for purchasing a newer model.

Whether its clothing, appliances or your home; regular maintenance keeps you from making big repairs that cost big money. Use care – recycle, remodel and recreate. Use your skills to repair or trade off with someone who has the skills you don't. For example, a friend or relative might be able to do a roof repair for you if you do the painting job at their house.

Food is another spending category that can be controlled if you plan. Buy only what you will use within a week and eliminate food waste. The average family wastes about 20 percent of their food through improper storage; buying too much and then eat out all week or not using leftovers. Just think about all of those science projects in the back of the refrigerator you have to throw out. Next time you clean out the refrigerator, add up the cost you are putting into the garbage can. Plan meals and snacks around weekly sales, start preparing more food at home and you will spend less.

Manage credit wisely. If you use credit, try to buy at the start of the billing cycle, so there is a delay in the payment of 25 - 30 days; be sure to charge only what you can pay off. Pay bills in full to save the interest fees.  Challenge yourself to operate on a cash-only basis for a couple of months while you work on paying down those credit card debts.

Check your spending habits. Do you waste money? We often spend more than we think and money slips through our wallets without much thought. Try this exercise – for one week, whenever you take your wallet out, write down how much you spend and make a note of the item purchased. You may be shocked at the amount of money leaving your pockets each week when you aren't paying attention. We call these small amounts spending leaks, and they can add up to large amounts over time. Remember, a dollar a day saved is $365 a year.

Controlling money is in your hands. It's up to you to manage spending and direct money where you want it to go. For a free copy of our money management calendar or more information on how you can cut costs and take charge of your money, contact the Madison County Extension Service.

The IFAS/University of Florida Extension – Madison County is an Equal Employment Opportunity Institution.