#LLAMoneySeries – How to create your money management system in 7 days or less by Tiffany Alichie

Tiffany Aliche

Tiffany “The Budgetnista” Aliche, is an award-winning teacher of financial education and is quickly becoming America’s favourite, personal financial educator. Through her company, The Budgetnista, Tiffany has created a financial movement that has helped over 1 million women worldwide collectively save more than $200 million, and pay off over $100 million in debt, purchase homes and transform the way they think about their finances. The women that take part in this global movement call themselves, Dream Catchers.

She is a NextAdvisor contributing editor, and she also blogs about personal finance for The Huffington Post and The Budgetnista Blog, Co-hosts an award-winning podcast, Brown Ambition, and has an online school, the Live Richer Academy that teaches women how to create, implement and automate their own financial education path.

Tiffany Aliche is the author of “The One Week Budget”. In this book, Tiffany Alichie shares insightful tips on how to create a money management system.

Create a List of Your Spending Habits

Tiffany achieved her first financial goal by setting a clear, written, and measurable financial goal. She wrote her goal, chose a time frame, created a plan, and used her money management system. Creating a money list will keep you conscious of how you spend every dime. It is important to make a list of everything you spend money on. Tiffany said, “If you do not learn to respect money in smaller amounts, you will never respect or keep it in larger amounts.

Write the monthly cost of each expense

The most important aspect of keeping your money is being aware of how much of it you are spending. Being aware of your spending habit is the first step in changing your spending habit. You cannot change what you do not know. Use the money list you have created and add realistic monthly amounts next to each expense. Documenting your expenses and comparing it with your income will give you the full scope of your financial situation. According to Tiffany, “A way to rebuild your financial future begins with full disclosure of your current fiscal status”.

Separate your expenses

Separation, whether it be a relationship or an analysis of your finances, can both provide you with a new and valuable perspective. By separating your expenses, you can see the level of control you have on each expense. This will allow you to make the necessary changes. Your expenses should be divided into; Fixed expenses, Adjustable/Usage expenses, Easily Adjustable/Cash expenses.

Reduce your spending

Tiffany’s approach to reducing spending habits is by cutting down the easily adjustable expenses. For expenses that are adjustable or moderate, ask yourself if you really need to spend much on that item. Keep in mind that when it comes to your money, no change is too small. An expense as little as getting a smaller coffee each morning can add up down the line.

Save and revamp your money list

Ensure to pay yourself first as you receive a paycheck. It is commonly said, “Little drops of water make an ocean”. The money you set aside monthly as savings can be used to execute a big project or an investment opportunity that you never thought would come your way. It important for you to update your budget, you could do this by revamping your money list to reflect your new income. It is disturbingly common for people to make more money, but not save more. You must plan in advance if you want to maximize an increase in pay.

Feel free to apply these tips and see how it works, we hope this helps!

Source: The One Week Budget by Tiffany Alichie “The Budgetnista”

 

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