The basics of money management aren’t just for beginners. Sometimes, changes in life can also bring changes to your finances. Here are tips on how to start building a solid foundation and work toward your goals.

Being a good money manager is a lifelong pursuit for many of us, and how you handle your finances often depends on your personal situation.

If you’re having trouble making ends meet, small challenges can quickly turn into bigger problems. If you’re at a stage in your life where you’re setting goals — maybe buying a house, starting a family, going to grad school, or planning for retirement — you might be looking more closely at where your money goes and how to make it go further.

These are 11 key tips for managing money that I wish I knew earlier, and that I now share with my students and adult children.

1. Track Your Spending

This is my number one tip for a reason. You need to know how much you spend and what you spend it on before you can take control of your finances. This also helps you decide where to cut back if needed.

With so many electronic payment options, it can be harder to see where your money is going. It’s easy to tap or swipe without thinking much — until your credit card bill arrives or your checking account balance runs low.

You don’t have to switch to using only cash to feel more connected with your finances. You just need to develop good record-keeping habits alongside your spending habits. There are many digital tools available, such as Goodbudget, Quicken Simplifi, or YNAB.

You can also use a manual method — carry a notebook and write down everything you buy and its cost. This is my preferred way because it makes me feel more accountable each time I spend.

Tracking expenses is the first step to creating a budget. For now, start with tracking.

Tips for Tracking Spending

• Categorize every expense or adjust the categories your app or website assigns to your purchases.
  
• Review at least two months of spending; a full year is even better.
  
• Note big expenses — how much they cost and when you paid them, such as taxes in April or insurance payments twice a year.
  
• Review your spending by category.
  
• Don’t double-count credit card payments. Only add up the charges to your credit card, not the payments from your checking account to the card.
  

2. Add Up Your Income

This is simple if you have one job and a regular salary.

If you share income and expenses with a partner, work hourly, have an irregular schedule, earn tips, or have a side gig, it can be more complicated.

If your income varies, total up a year’s worth and divide by 12 to get a monthly average.

3. Coming Up Short? Close the Gap

It’s not your imagination — inflation has increased the cost of groceries, gas, and utilities. Even if you haven’t changed your habits, your expenses may be higher, and your income might not go as far.

If your expenses are greater than your income, you have two main options to reduce debt and save: spend less or earn more.

Try to Spend Less
Look at your largest spending categories for opportunities to cut back. Skip rent or mortgage for now since those are bigger life changes.

Start with non-essentials like vacations, entertainment, dining out, and gifts. Then review things like subscriptions, insurance, and phone service. Can you reduce or eliminate any? Could you get a better deal with another provider?

I suggest cutting back, not cutting out. Save a little for fun to avoid feeling deprived and overspending later.

Try to Earn More
If cutting expenses isn’t enough, see if you can increase your income.

You might ask for a raise or explore promotion opportunities at your current job. If that’s not possible, switching jobs may be a faster way to boost your pay.

You could also start a side gig if you have the time and skills.

4. Build an Emergency Fund

An emergency fund can help cover sudden income loss or large, unexpected costs, such as car repairs, home expenses, or medical bills.

Aim for three to six months’ worth of essential expenses. Save every month, even if it’s a small amount. Start with a goal like $100 and grow it over time.

5. Pay Bills On Time Every Month

Paying bills on time helps you avoid late fees, reduce finance charges, and improve your credit score.

Track due dates and amounts, and note when payments are processed so you don’t overdraw your account.

Auto-pay can help, but only if you’re sure you’ll have enough in your account to cover them.

6. Use Separate Accounts for Spending and Savings

Keep a checking account for daily transactions and bills, and a savings account for extra funds and goals.

You can open multiple accounts or use other tools to organize your savings for different purposes.

7. Be Intentional About Debit vs. Credit

Debit and credit cards may seem similar, but choosing the right one for each purchase can help you manage your money better.

When to Choose Debit
Debit cards are linked to your checking account. When the money’s gone, it’s gone.

For everyday purchases, debit can help prevent overspending since you can only use the money you already have.

Just remember upcoming auto-pay bills so you don’t accidentally overdraw your account.

When to Choose Credit
Using a credit card is like taking a short-term loan. Your credit limit might be higher than what you can afford to pay off monthly.

If you pay your balance in full every month, the loan is interest-free. But if you spend more than you can repay, you’ll owe interest and fees, which can add up quickly.

Credit cards can be useful for:

• Everyday expenses (if you can pay them off each month) to build credit.
  
• Large purchases, as long as you have a plan to pay them off.
  
• Emergencies, though it’s better to have an emergency fund.
  
• Added security, since you can dispute fraudulent charges and seek reimbursement.
  

8. Pay Off Credit Card Debt

Start by tracking your spending, reviewing expenses, and knowing your income. Then choose a repayment method, such as the debt snowball, avalanche, or cascade.

Always make at least the minimum payment each month.

Don’t overcommit to repayment and leave yourself without enough for essentials. Saving should remain a priority.

9. Reduce Housing Costs

Housing is often the largest expense and the hardest to change. The less you spend here, the more you can put toward other needs and savings.

Aim to keep housing costs under 30% of your income.

If you’re buying a home, remember to factor in insurance and taxes. Borrow only what you can realistically afford, not just what a lender approves.

10. Save for Your Future

If I could give my younger self advice, I’d say: start saving for retirement earlier.

Think about what you want in the future, set goals, and begin saving now.

Choose accounts based on your goals, interest rates, and tax advantages. Examples include:

• House down payment: Consider a certificate of deposit (CD) if you’re buying in one to five years.
  
• College: A 529 plan allows tax-free growth if used for education expenses.
  
• Retirement: Use employer 401(k) plans with matching contributions, or open your own IRA.
  

11. Get Support

You don’t have to figure out money management alone. Many people benefit from guidance.

Here are some resources:

• Budgeting and goal setting: Consult with a trained financial specialist.
  
• Credit and debt counseling: Services like GreenPath Financial Wellness offer free help.
  
• Online learning: Look for free seminars, webinars, and interactive financial education tools.