One of the biggest dilemmas facing people today is the effective and proper money management. You should carefully plan your expenses and savings so that you have enough money at all times and are never in any financial predicament. Keep a considerable surplus at all times and make efforts not to enter into debts. Here, are a few pointers that will help you to keep your finances under control.

Incomes

Make a list of all your sources of income across the year be it your job, a part time job, gifts, tax refunds etc. On dividing this amount by twelve you will get your average monthly income.

Expenses

Try to estimate the amount you spend each month. Make a list of all your expenses starting from the very obvious like food to the not so obvious ones like purchasing car accessories, dental care, etc. Try to enlist for the whole year and then divide by twelve to get the average monthly expenditure

Now, evaluate the above two. If your monthly income exceeds the expenses, it is a positive sign and means that you can save the surplus or invest it for future use. If the expenses exceed the income, it indicates that you are running into debts and need to cut down on your expenses, especially of luxury items, in order to pay the debts off.

Debts

You should note down all the debts you owe. Be careful that you do not skip any especially those of credit cards, car loans, and home mortgages. Now, enter the total amount for each item , the period in which it has to be paid and the rate of interest. This table will enable you to have a better idea of your financial condition and the steps required to be carried out.

Assets

Make a note of all your movable assets such as your vehicle, furniture, etc as well as your immovable assets like your real estate.

Eliminate debt

Now start taking measures to get rid of your debts. Some of the effective debt solutions are:

* Debt Consolidation

* Debt Consolidation Loan

* Home Equity Loan

* Credit Counseling

Investment

If you have any surplus money left after paying your monthly expenses, debt installments, etc you can begin investing this surplus. This will result in your wealth expanding. There are a number of options in which to invest in, each having its returns inversely proportional to the risks involved. Properly balancing both factors, keeping in mind your nature and needs.

Thus, proper money management helps reduce stress and ensures a better standard of living.