Managing money is a skill that everyone needs to have. What differentiates a rich man to a poor man is how effectively each manages money. No matter how much you earn if you are not good at managing money you will remain poor in respective of the material acquisition you display.

These are few steps to take to manage money effectively.

1. Create a budget: A budget is a written document which state the expected income and expected expenditure. A budget gives you an insite into what your income are and what you intend spending it on.

2. Make room for savings at least 10 – 20% of your income very important the purpose of this is to have a left over for investment and emergencies.

3. Don’t buy on impulse always stick to your budget

4. Personal development: always study or attend seminars to improve your self in financial management

These are the few steps I believe will help you to manage your money effectively .