People are always asking me for simple money tips, to help them to manage their money better. Although there are hundreds and hundreds of ideas in my head for simple money tips, the easiest way to manage your money better is by following these 4 simple steps:

1 Asking yourself the "what if?"question

Think about how your life would look if you were debt free.  Or if you had a couple of hundred quid a month more.  If you were confident that you could retire at 60. How would you feel?  How would that change the way you behave?  What would you be able to do that you can't now?  What difference would it make to your life?

By starting to think about these things, you will find it is a very powerful way of motivating you to want to take charge of your own destiny.  This means that instead of feeling constrained and trapped, you feel liberated and excited about finding solutions.

2 Where am I now?

Considering your current position is vital, if you are to make these simple money tips work for you. Debt worrying you? Work out exactly how much you owe, who you owe it to, and at what interest rate.

Desperate to retire early? Start by figuring out how much your pension is currently worth, and how much you are likely to need in retirement.

Constantly anxious and uneasy, because you have no emergency savings?  Ask yourself the following questions.  Why do I have none?  What has caused this? What is the downside of having no savings?  How does this makes me feel?

Becoming aware of your feelings, and the impact that both they, and your behaviour have on you, is vital if you are to move forward.

3 What can I do to improve my situation?

Once you have identified your current position, you can then start to think about actions that you can take to improve it. 

Start brainstorming and writing down all the things that you can think of to improve your situation.  Don't think about whether they are good ideas or not, just write them all down - even the ones that seem bonkers!

In the case of debts.  Can you switch some to interest free credit cards?  Do you need to seek help from a free debt adviser?  Can you sort out a payment plan for it? Can you increase your payments?

If you have discovered enough in your pension to retire early, then pour yourself a glass of wine, put your feet up and enjoy! 

If not, then get your thinking cap on - how can you find more money to put towards your retirement?  Increase your hours?  Take on some tutoring?  Reduce your expenses?  Rent a room in your house to students?  Rent out stuff that you only use on rare occasions?

If you have no emergency fund, and would like to build one, then let's get started.  How could you raise some money quickly?  Have you anything you could sell?  Have a spend free week?  Slash some of your expenses? Can you make savings simply by making better choices?  

By getting as many ideas down on paper as possible, you will generate a feeling of excitement, which will help you to WANT to take action, rather than feeling that you SHOULD do something.

4 Take action

Look at all the suggestions from the previous task, and choose the ideas that you like best.  Write them down somewhere that you will see them often, decide when you will do them and give each one a date for start and completion.  Then get started. And that's it! No matter what is wrong in your financial life, taking some time to consider these 4 simple steps will help you to improve it!

Eileen x   I’m taking part in the Monday Money linky with Lynn from Mrs Mummy Penny, Faith from Much More With Less and Emma from EmmaDrew.Info