6 Money Management Principles.

1. Determine Essential Expenses. : 

The first step in creating financial value is to determine your non-negotiable or fixed expenses such as rent, car payments and utilities. You also can choose to put things like gas and groceries in this category. Add up these expenses, and subtract the total from your monthly income. Those expenses that you can't do without are the ESSENTIALS.

2 Keep Track.

Download personal finance and budgeting tools online and most are free and mobile. These applications allow you to track where your money is going. You can make smart financial decisions such as whether or not to join that after work happy hour. You can always shift your priorities, saving some of those wants and needs for next month.

3 Keep an Emergency Fund. 

I learnt this the hard way...DON'T LET THAT HAPPEN TO YOU
You never know when your car might break down, when you’ll need to take time off from work for family issues or your AC will begin to leak or when your boss will decide not to pay your salary as at when due or the cash flow from your business slows a bit.

It’s important to be prepared for life’s unexpected turns by having an emergency fund to tap. If you have three to six months of expenses saved up, you can avoid taking on debt, and adding value to your money. If you don't have a fund, start saving now. When something goes wrong, and it will, you won’t have to borrow or take out a loan to cover the cost.

4 Dine In. No matter how you feel about food, one thing is for sure – you have to eat. There are plenty of ways to think smarter about what you spend on food. Eating out often costs more than cooking at home, so even if you hate cooking, it pays – literally – to do some reading up on easy, fast recipes. You'll avoid the temptation of calling for takeout seven days a week. Consider making large batches of your favorite recipes over the weekend. Then, bring smaller lunch portions to work the next week. You will be amazed at how much you save from having lunch at the canteen at work. You may not cook or bring lunch from home all the time; but 4 days a week would add noticeable value to your money after a month. Remember don't spend the 'saved' money, actually save it by adding that to your savings.

It's beautiful and romantic to dine out with your Significant Other once in a while; believe me...cooking together promotes communication and intimacy by a good 70%... Once in a while give your loved one that DINE OUT Treat... then creat fun time cooking together or learning how to cook.....together.

5 Evaluate your housing costs. If you're paying for apartments that are beyond your means, it might be worth finding a smaller pad to reduce your living expenses. Carefully furnishing and maintaining your home also can cut expenses. Opt for refurbished furniture and appliances instead of new items. Take the time to clean and refurbish them yourself. Extend that do-it-yourself attitude toward maintenance, too. You can solve many household problems without hiring an expensive contractor.

6 Be Reasonable. Don’t plan a budget you will never be able to keep. Just like with a diet or an exercise program, it’s important to be realistic. If you’ve never been able to stick to a savings plan, or are a compulsive spender, don’t expect this to change overnight. Instead, start by setting small goals so you can build the confidence to tackle bigger changes down the road. It’s a marathon, not a sprint!

Above all, know that budgeting doesn’t have to be about deprivation. If you follow these tips, you can easily create a livable budget that will help you achieve financial peace of mind.