The tips on this page will help you get started on an effective money-management strategy.

From here you can establish a budget that will help you in meeting your monthly expenses. Use the following table of average entry-level salaries to develop your monthly budget.

• Determine your current status: Net worth (Your assets minus what you owe).
  Cash flow situation (After-tax income minus monthly expenses).
• Develop a realistic budget and stick to it.
• Pinpoint where you can reduce spending and increase savings.
• Live a little below your means, rather than slightly above.
• Start your savings plan now. Deposit a portion of every check into two savings funds: short-term emergencies and long-term planning.

Debt Management

Expenses
Control your spending. Shop wisely, compare prices, determine what you need as compared to what you want.

Emergency Fund
You should have three to six months' salary set aside as a cushion against unforeseen problems such as job loss, medical problems, major repair or accident. This fund is not for catastrophes; insurance is needed for that purpose.

Housing
Share expenses with roommates, shop wisely for an apartment or home, compare costs and find out which utilities are included and which you must pay.

Telephone
Consider writing a letter instead of making a long-distance call. Take advantage of discounted evening and weekend rates.

Transportation
Consider alternate modes of transportation such as busing or car pooling before buying a car. A car brings additional costs of insurance, license, gas, maintenance and parking.

If you must purchase a car and the car you are considering requires financing, consider buying a less expensive car. If you must finance, be sure you can afford the payments.

Entertainment/Vacation
While entertainment and vacations are necessary, they needn't be expensive. Set a limit on your entertainment expenses which fits into your total budget and stay within that limit.

Debt
There are two types of credit accounts: Installment and revolving. Your student loan is an installment account. The payments are fixed. A department store credit card is a revolving account where minimum payments are based on the balance and the balance may be increased through additional charges.

Carefully consider your budget plan before taking on any additional consumer debt.

Credit Cards
Credit is not cash! Credit cards are useful in providing identification and for cashing checks, renting cars and for emergencies. But you only need enough cards to assure convenience. It is important that balances are paid each month to avoid finance charges. Shop for low annual fees and low interest rates.

If you are an impulse buyer, leave your credit cards at home. If you find yourself charging and making only the minimum payment, you're in trouble. Put your cards away until your balances are paid off. Remember your successful payment records will show on your credit bureau rating.

If you are in over your head, contact a service such as Consumer Credit Counseling Service.

Financial Planning
This guideline is intended to get you off to a good start. Once you understand and have implemented these options, completed your emergency fund and begun working on additional savings, it will be time to consider further financial planning. Check your library for books about financial planning and investment opportunities.

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