It never ends. We constantly hear story after story about former athletes, lottery winners, heirs to a huge inheritance, etc.,  blowing all their money only to become average or poor again.

They have millions of dollars to their name, yet find creative ways to spend it all in a short period of time. What is the point in having any amount of money if you don't know what to do with it?

To keep you from ever falling in this trap, here are 17 ways to manager your money more effectively, no matter how much you have:


1. Avoid Debt At All Costs

“If you've got $25,000, $50,000, $100,000, you're better off paying off any debt you have because that's a guaranteed return.”

– Mark Cuban

Successful people avoid debt, they don't build it up. Avoid loans if possible. Avoid using credit cards all the time, especially if you might not have enough money to pay them off right away.

DOn't ever buy something you can't pay for. The last thing you want to do is kill your credit with massive loads of debt.


2. Live Below Your Means

We always hear stories about people who live beyond their means and look where it gets them. You see people trying to “keep up with the Joneses” and for what? To impress somewhat you probably don't even like?

Don't ever assume business will always be as good as it is now. Be prepared to live on less if you need to. In fact, live as if you are making a little less than you actually are.

Save your money for necessities. It's okay to buy what you want and enjoy your life, but don't ever act like you have an unlimited supply of money.


3. Take Smaller Risks For Bigger Rewards

I'm always reminded of Richard Branson when it comes to minimizing risk while maximizing rewards. Branson, founder of Virgin Group, wanted to start an airline.

But, this can be a very risky, expensive venture to get into. Luckily, Branson became a billionaire by finding ways to minimize the risk while keeping the upside of his deals.

So, what kind of deal did he negotiate to start Virgin Air?

He made a deal with a company to use their fancy new planes for two years to start his airline and if it didn't work out after that timeframe, he would give them all back with no liabilities.

By doing this, he really could not lose. This is thinking you should have when it comes to making business deals or looking at new ventures.


4. Have A Clear Budget

If you don't have a budget, you will be estimating how much you are spending in different areas each month. If you are estimating, you are not going to be completely accurate.

And, if you aren't going to be completely accurate in keeping up with your spending, you will too often go over how much you should be spending in some areas.

This is how you get yourself in a hole financially. Have a clear budget and stick to it. Know how much you can afford to be spending on each area of your life.


5. Model After Someone Who Manages Money Well

“Why reinvent the wheel? Success leaves clues.”

– Tony Robbins

One of the best ways to be good at just about anything is to just find someone who does it well and model their strategies in your own life. Learn from people who know how to manage their money.

Find a mentor, family member, friend, etc. that can show you some great tips that they personally use.


Related: Focus On Being Productive Instead Of Busy


6. Don't Make Emotional Money Decisions

One secret to the success of people like Warren Buffett, is they make logical decisions instead of impulsive, emotional ones. Think each decision through before making it when it comes to money.

Think about the worst case scenario, best case scenario, probability of what will happen, etc. When you take emotion out of the equation, you will find that it is much easier to make good decisions.

7. Think Long-Term

“Don't give up what you want most for what you want now.”

There are a lot of people in the world that are obsessed with instant gratification. These people typically turn into addicts. Don't be tempted to sacrifice long term goals for short term pleasure.

Putting off some purchases today can put you in better position for tomorrow. Think about what the long term effects will be if you pay for that instant gratification today.

“Unsuccessful people make decisions based on their current situations. Successful people make decisions based on where they want to be.”


8. Set Money Aside For Emergencies

Not everyday is going to be a great day. Sooner or later, we all have those disasters or sudden misfortunes that can catch us off guard. It's time you start making sure you're prepared for that.

Don't live off exactly what you make each month. What if your car breaks down? What if you lose your job? What if your business has a bad month? Anything can happen.

This is why successful people who stay that way tend to set aside enough money to last them a good while if things go south. You should do the same.



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9. Diversify Your Income

“I believe in diversification of income, because you never know what will happen. I'm a slightly paranoid person who thinks things could be ruined at any time.”

– Eugene Mirman

Whether you're investing, working as an employee, or running a business, don't have all your eggs in one basket. If your company goes under, you better have something else or your income will be shut off in the blink of an eye.

If you have all your money invested in Apple and all of a sudden there is a huge dip in their stock or they completely fall apart one day, what are you going to do? Keep this in mind and diversify.

Take a percentage of your income and put it in other things that can bring in more income.


10. Don't Mistake Wants For Needs

Just because you can buy something doesn't mean you should. In fact, there will be times when you have to make a choice between that new car or a college fund for your kid.

Or, maybe the choice will be between a new house or a new business opportunity that could very well double your income. The most successful people in the world know how to prioritize their purchases.

Make a responsible decision when you must choose between stuff you want and things you need.


11. Educate Yourself Daily

What do Bill Gates, Richard Branson and Mark Zuckerberg have in common? They all built billion dollar empires without a college degree. But, that doesn't mean they don't educate themselves.

In fact, many entrepreneurs will tell you that the most important knowledge they've gained is not from school, but from books and experience.

Just about every successful person you meet will tell you they read on a daily basis. This is how they gain the knowledge they need, become wiser every day and keep an edge over the competition.

You can learn how to manage your finances like the wealthy by reading the same books as them.


12. Tweak Things That Aren't Working

“Insanity: Doing the same thing over and over again expecting different results.”

– Albert Einstein

If you are having trouble managing your money, you have to change your approach. You can't keep doing the same things. Let's say you spend too much on food.

Maybe you eat out a lot and you try to hold the bill down, but you always end up going over budget each month. Instead of trying to force yourself to spend less at restaurants, try cooking more.

Try bringing your lunch to work. Maybe, if you are crunched for time during the week, you can make all your lunches on Sunday and store them in your refrigerator.

This way, you can just grab it and go each day without worrying about restaurant bills. This is just one of many examples that could be made. The point is, tweak your strategy until you get it right.


Related: How To Start A Business Online With No Money In 2016


13. Automate What You Can

When it comes to managing your money, you might be your own worst enemy. The best way for you to consistently reach your management goals could be to remove yourself from the equation entirely.

You can auto-pay your bills, set up accounts that deposit a percentage into savings, automate your investing, etc.

This way you have less to manually do each month, resulting in more time, as well as better budgeting.


14. Keep Track Of All Expenses

If you don't know exactly what you are spending on what each month, how can you hope to make any improvements? You MUST know the numbers.

Use online banking, bank statements, checkbook balancing or other strategies to make it easy for you to always know exactly how much is coming and going out.

Don't just guess and hope that you still have some money left.


15. Hire A Bookkeeper

Sometimes we just need to outsource tasks to professionals. If you don't want to have to keep track of all your finances yourself, hire a bookkeeper or accountant to do it for you.

They can keep track of all your records, do your taxes for you, etc.


16. Get Software

So, maybe you don't mind doing your own finances, but you might not be the most organized person in the world. Well, that's what we have Quickbooks and Quicken for.

These pieces of software can help you do your bookkeeping yourself while staying organized with your own invoices, bank account tracking, merchant accounts, etc.


17. Make Sacrifices

You won't always be able to get the best of everything. You won't always be able to buy the next cool gadget as soon as it comes out. To manage your money effectively, you will have to make sacrifices.

Maybe you drive your car a few more years because you know you can afford a new one after that. Maybe you rent for a while before you buy a house.

Maybe you settle for a 50″ TV on sale instead of a top-of-the-line home theater projector. Don't make irresponsible purchases. I'll bet, if you be patient and smart with your money, you'll be able to upgrade in due time anyway.



If you don't know how to handle the money you have, it doesn't matter how much you make. It's time you have a solid plan for getting the most of your income.

It is definitely possible to plan for the future, focus on goals, be prepared for emergencies, and still have some fun along the way if you just follow the strategies other successful people use.

What do you think is the most effective way to manage your money effectively?


"How To Make $10,000 Per Month Online"

We'll go over exactly how you can copy our simple, online business model that has made $10,000+ per month for countless people.

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