Live Below Your Means

Here are some LBYM tips that you can start following right now:

• Set aside money for bill payments. Avoid getting into debt or paying penalty fees by paying past the bills' due dates
• Plan for major yearly expenses like insurance, car registration, and tuition
• Choose a good school near your house
• Indulge in simple things. Go for good, clean fun: rent videos, cook together, play cards, even clean the house
• Don't give in to excess
• Buy quality but affordable products
• Don't buy lunch; bring food from home
• Plan ahead and be prepared for any emergency
• Teach your kids about money
• Make wise investments
• Be prudent shoppers
  

Take Charge of Your Money

If your income is not enough to cover all your expenses, you must either cut your expenses or increase your income. You'll find that it's usually easier to cut spending. You don't need to make drastic changes, but make some effective cuts that will allow you to pay your bills. First, cover the bills you must pay ( mortgage, utilities, loan payments, credit card ) and money for necessities (food, clothing, insurance). Then, focus on non-essentials - areas where you can afford to cut back.

It's also good to choose a bank that will help you define your money goals and how to achieve them. Don't wait until you have your first million to sit down with a wealth planner - planning your finances today will make that first million happen sooner.