Wise money management is essential for a balanced, happy life. Financial stress resulting from poor money management skills can affect our capacity to make good decisions, harm our relationships, affect physical and mental health, and ultimately to function well in life. It is no exaggeration to say that poor money management breaks up marriages and breaks down hope. Yet, money management is a skill which can be learned. Even if financial problems are largely the result of just not earning enough income, good money management skills can reduce the stress of these circumstances and provide a bit more mental room to focus on solutions.
Here are six tips for managing your money wisely, which, if applied, will improve the overall quality of your life:
KNOW WHERE YOUR MONEY IS GOING. It is important to stop the financial leakage. We all know what it is like to have our money dribbling away one coin or one note at a time. It is important to pay attention to our spending. It can be very helpful to record all expenditure for a set period of time just so you know where your money is going. Prepare to be shocked; most people have no idea how much money is being lost to unnecessary expenses. Once you know where your money is going, you can curtail unnecessary expenses.
DESIGN A BUDGET THAT WORKS FOR YOU AND STICK TO IT. You can design your own, or get a free budgeting form off the internet. Make sure at least some of your money goes to debt reduction and savings. Create a budget that will meet your financial obligations and if you have to cut down on certain expenditures to live within your budget then do so. Once you remove the stress of financial insufficiency through good money management, you will find you are able to improve your financial circumstances gradually. This is next to impossible when you are overspending. | 
