Managing your money

Managing your money is about careful planning - even a millionaire can quickly lose it all if they do not plan well.

Your money plan is called a budget. Your budget provides guidelines as to how much you can spend and helps you work out what to spend your money on.
 

The Micawber Principle:

Mr Micawber, a famous character in Charles Dickens' Pickwick papers summed it up like this:

"Annual income twenty pounds, annual expenditure nineteen nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery."

In other words always try and make sure that you spend less, even a little less, than you earn. Here's some quick tips on how to do that.

Once you have decided to prepare a budget you need a budget worksheet.

In order to prepare your budget using the worksheet, you will need to gather together information on your income and costs

It's a great feeling when you have completed your budget, but that's only the beginning. Now you have to make it work. Here's some quick tips on how to do it.

If you find that somehow it still is not working out, it may be you need some personalised help.
 

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