Are you ready to put your finances in order?  Perhaps money has been managing you versus you managing money?  Well, I think there are 4 solid commitments you can make to manage money more wisely today.

Wise Personal Money Management

1. Create a budget and stick with it

It’s critical you are able to plan a purpose for each dollar by having a budget, track expenses and know when to stop spending after you have met the total expenditures available in the spending category of your plan.

Take action: Start tracking your spending today. You can only build an accurate spending plan by tracking your spending for 2-3 months against common categories.

Take action: Set up a spending plan. Even if you haven’t tracked your expenses for 2-3 months, you can use some estimates and try to live within them until you know the actual expenses. Keep in mind, your spending plan must balance income and expenses.

2. Commit to no more debt and to become debt free

Debt is probably the most common problem with personal money management. There are plenty of resources and budget coaches available to help you understand your current debt situation and to build a plan to eliminate it. Keep in mind; you can’t become debt free if you’re still accumulating debt. If you use a credit card, the balance must be paid off in full every month.

Take action: Check out DebtGoal . It’s a debt payment tool to help you build a plan to become debt free.

3. Stretch your faith and give

Make the necessary changes in order to tithe back to God what is his to begin with. If you’re constrained by debt, give something with the commitment to give more until you can give 10% of your gross income every month. Giving is the first payment that should be made from every paycheck.

Take action: Start with your gross income and subtract 10% giving. Take the remaining amounts and allocate towards saving and other common monthly expenditures. If you do not have enough money after giving to meet other expenditures you may have a problem with debt or could be over spending in some area.

4. Save for the unexpected

The second payment is savings. Pay God and then pay yourself. Most money coaches advise 3 – 6 months savings in cash. You can’t get there tomorrow, but you must make the commitment to achieve this goal. Having cash on hand eliminates the need for the use of credit when the unexpected occurs.

Take action: Evaluate your spending plan. Where can you immediately make changes in your spending habits to contribute at least 5% to savings after giving and taxes?

What are some other commitments that can be made towards wise personal money management?

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