For a lot of us, money management doesn’t come easily, but remember, money itself is neither good nor bad. It is up to us—the people using the money—to manage it well. So the next time you try putting your “financial house” in order, try following these ten basic guidelines complied by Consumer Credit Counseling Services, a division of Money Management International (MMI) is a national nonprofit, community service organization that provides professional financial guidance, counseling, community-wide educational programs, and debt management assistance.

1. Know your financial situation. In other words be real with yourself. If you make $300 a week or $500 a month, this is the reality of your situation. It is only a starting place and is neither good nor bad.

2. Set financial goals. Knowing what is important to you—your priorities and your values—will not only help you with your goals, but the information will also keep you on track so you can meet the financial goals you set.

3. Plan for expenses. Birthdays, holidays, and car repairs are expenses that you should expect. Plan for these events by putting money aside.

4. Develop a realistic budget. If you took the time to set goals (from step two), you will set a budget that meets those goals

5. Distinguish betweens needs vs. wants. We live in a society that loves to convince us that we need everything. In reality, as long as we have a roof over our head and clothes on our back, food on the table, as well as electricity, heat, hot water, and a basic phone line, the rest is just luxury. Knowing the difference between needs and wants will put spending in perspective.  

6. Do not allow expenses to exceed income. This sounds great, but the reality for you may be that there isn’t enough income to meet even basic needs. If this is the case, you need to get creative with budgeting. Perhaps you could dine at a family member’s home twice a week to save money on food, or you could exchange child care with someone (you could watch children at night while the other parent watches your children during the day, allowing both parents to work without paying for child care). Where there’s a will there’s a way; even though it may seem impossible, it’s not.

7. Save! This is another important habit. Even if you can start by saving only $5 per week, do it. Learn to save small amounts over a long period of time. Did you know that investing $1 a day wisely from age 20 through age 55 would mean you would have $1,000,000?

8. Pay your bills on time. Paying your utilities and rent on time is the way to begin establishing credit. Doing so consistently may go a long way toward getting a car loan or credit card at a lower interest rate.

9. Use credit wisely. Another thing America does well is soliciting for credit cards. Do yourself a favor and get educated on credit before you get a bunch of credit cards, max them out, and wreck your credit score. It doesn’t take long to destroy your credit, but it could take years to repair it.

10. Track your spending. Before creating a spending plan, see where your money is going. From there, you can prioritize your financial goals and begin to put together a spending plan.

Managing money is something most of us were never taught; rather, we learned as we went, often picking up the financial habits of people who may not have made good choices. Using these ten tips is a start in trying to organize your financial house.

For more information please contact Andrea Hardy at the CRT H.O.M.E. (Home Ownership Made Easy) Center. She can be reached at 860-560-4210 or hardya@crtct.org.