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Personal financial is getting more complex. People are more likely to find their financial adviser or financial planner for advice and suggestions. Professional advice can help a lot in your investment. But we still have to make some plans for the small amount of money that we use in our daily life.

You are too busy to tackle the money, since it is really a tough thing, but money is tight, which force you to make good use of them to live a better life, and live the way you want.

First you have to track your spending.
For many people, it is easy to avoid spending too much money in the so-called “big-ticket expenses”, but the truth is the smaller spending can also be a killer. If you have ever find many small stuffs that spend little but useless, and you have to throw them away when you do the cleaning, you may understand where your money has gone to.

Then, what you can do is to gather up your bank and credit card statements, make a chart, or you can also use personal financial programs on internet, to tracking your spending.

Second, check your credit profile.
If you have credit cards, you’d better know more about it, such as the policy of the credit card. Your credit score affects the interest rates you’re offered on credit cards and loans and in some states may also influence your insurance premiums.

Third, calculate your net worth.
You have to know where your money is gone. You also have to know what you have. Financial security requires facing up the big picture of assets minus debts.

You can type “net work calculator” into search engine and you will find plenty of free online tools to help you take stock of your assets and debts.

Fourth, cut your spending by 10 percent.
If you have ever read the book “The Richest Man in Babylon”, you must be impressive by the suggestion of save at least 10 percent of your income each month.

Make your own expense sheet and input your income and outflow into it, circle your every expense that is a want (not a need), then figure out how to reduce or eliminate it.

Fifth, save up some money. Don’t use up all the money you get.

Though you have many debts to pay, you still have to save some money.

Last, boost your emergency fund to cover eight months of living expense.
As long as you start saving, you should keep at it until you have at least eight months’ worth of living expense.

Remember never invest your emergency savings in the stock market.

I think make a personal planning is really useful. You can ask your financial advisers for more suggestion about it, or seek information from books and magazines.

Internet is also a good resource where you can find much more useful information. There are many personal financial programs and websites available for you to simplify your personal financial planning progress.

Wish you will find your financial confidence.