I live in a constant state of “What to do?” Being an adult is hard, especially when it comes to managing money and budgeting. I want to make the best possible decision, but the best decision isn’t always clear. To be an effective money manager, it takes budgeting, decision-making, and planning.

-Develop a budget. This is major! You won’t be able to effectively manage funds without a budget. List all sources of income and all monthly expenses. This will help you know when and what bills are due so that all bills are paid on time and there is enough money in your account to pay them.

-Determine wants vs. needs. A huge decision I had to make was whether or not to get cable. I choose not to get it because it is an extra bill I don’t need. Determine what you can afford right now and what you can put off until later. Also, try bringing your lunch to work instead of eating out. Look at some other areas where you can cut back, like, getting a lesser phone plane or cutting out weekly manicures.

-Don’t put off saving. Having money set aside is important, especially when unexpected expenses come up, like, buying tires for your car. Each month my bank automatically debits a preset amount from my checking account into my savings account. This is an easy way to save and the savings account quickly grows over a period of time.

-Don’t rely on credit. Purchasing items on a credit card may seem like a good idea at first, but carrying a large credit card debt (that you can’t afford to pay back) will make a difficult situation even worse. It will also hurt your credit and cause you to be denied other forms of credit that really matter, like, taking out a mortgage someday.

-Get into a realistic payment plan for student loan debt. Student loan debt is a reality for many college graduates. According to a 2008 College Board study, two out of every three undergraduates walk across the stage with some form of student loan debt. Consolidation is a good option because it lowers your monthly payment, but it may not be the best option for everyone. The longer a loan is extended the more interest will accrue. If you cannot afford the monthly payments on your student loan debt contact your loan provider. You may be able to get into an interest only payment plan for two or four years. Deferment and forbearance are also options, but if you are working I would encourage new grads to pay something on student loan debt instead of putting it off.

-Seek the financial guidance of someone you trust. Mentors are valuable in giving advice especially in areas that are unfamiliar and often confusing like buying a car. You should choose someone that has a pattern of making good financial decisions for themselves. This can be anyone from a parent, pastor, former boss, older sibling, hair stylist/barber, or professor. I choose a close family friend that runs his own business. I can call him anytime and ask a question or advice.

Finally, if you have cut out and cut back as much as possible and money is still tight get a part-time job. Look for freelance or part-time work in a field that interests you, like, freelance photography. You’ll bring in extra income and hone your passion.

I miss free time.  Not only because it is relaxing, but because it is also free. 

I’d love to blame my time shortage on responsibilities; however, I elected to participate in most of my draining activities.  I’ve replaced reading a book with hosting a book club dinner; taking a walk with training for a 10k; gardening with a trip to the new gourmet market (and subsequently cooking dinner for the neighbors).  In other words, I’ve replaced relaxation with excitement which is costly in more ways than one. 

I actually started thinking about this fact a few months ago when I read and commented on a blog post at BrokeGradStudent.com in which the author wrote “It’s easy to get carried away when you’re having fun. “  How true.  We have a whole garage full of expensive, dusty equipment to prove that we have become too busy to enjoy the things we love.

Now that summer is here, the problem has only gotten worse.  Like many parents, I didn’t realize just how active my children were all day at school—until I was tasked with keeping occupied during summer vacation. Vacations, summer camps, and child care are some of the big ticket items I was ready for.  However, the summer was already starting to get expensive in terms of finding day-to-day activities that keep children occupied.  Trips to the movies, swim toys, and meals-on-the-run can quickly turn into budget breakers.

The good news is that summer has just begun and it is not too late to learn from past mistakes.  I vow to reclaim the lazy part of the “lazy days of summer.”  Summertime is designed for taking it easy, so I am going to stop stressing about planning every minute.  Even active children (and their worn out and broke parents) need a break and should be allowed to learn the art of relaxation.  

Few will argue that money is the number one reason married couples fight with one another. Since we are about to enter the peak season for weddings, I offer you the following guidelines for couples to use when discussing money and planning their financial future:

1. SET PRIORITIES AND SPECIFIC GOALS. Don’t assume you both have the same goals without discussing them.

2. DISCUSS VALUES. Sometimes differing values make agreement on goals difficult. When one person wants to spend now and one wants to save for later, it can be a source of friction. The same is true when one spouse tends to be less risk oriented than the other about investments.

3. PLAN IN FIVE YEAR UNITS. When planning for five year blocks, you can set both intermediate and long-range goals without feeling you’re being deprived forever.

4. BUDGET TOGETHER. Set up a manageable system for your cash flow together.

5. KNOW WHERE YOUR MONEY IS GOING. Keep records of your spending.

6. DON’T ASSUME THAT BECAUSE YOU ARE BOTH WORKING YOU HAVE A LOT MORE TO SPEND.

7. SAVE REGULARLY so you aren’t locked into that second income.

8. WHO HANDLES THE ACTUAL PAPERWORK CAN BE A MATTER OF PERSONAL PREFERENCE, although both of you should practice at it.

9. DON’T CONFUSE THE TASK OF DOING PAPERWORK WITH THE ACT OF FINANCIAL DECISION MAKING.

10. SIT DOWN TOGETHER AND DISCUSS FINANCES at least once a month.