“Financial Freedom Is Not How Much You Earn, It’s How You Manage It” (September 2009)   Many people dream of winning the lotto so they never have to worry about bills again. But the reality is that if you don’t know how to manage your money now, the chances are that if you had more money, you could end up in the same situation. How many times in past have you said that if you were earning another €100 per week, you would be fine but when your income does increase by this amount, your have already increased your expenses and are back to square one. Happiness is spending less than your income so to be financially free you must first know how much you need to live.   Work out how much your bills cost you each week, or month if you are paid monthly - simply list and total your bills for the year and divide by 52 or 12. Do the same with all your expenses such as food, clothes, school costs, holidays etc. You can find simple financial planners online to do the calculations for you. Total your net income including any child allowances etc and deduct your total expenses to see what you have left over or indeed how much you are short! You have now just completed your Income and Expenditure plan and knowing these numbers is the key to good financial management. You are now armed with information which will help you make decisions that can provide you with financial freedom. Use these numbers any time you need to make decisions on what to buy or what you can afford.   Look through your expenses and see if there are any expenses that you can reduce to give you more financial freedom. Keep your income and expenditure plan updated and by knowing your numbers you will make informed, smarter financial decisions and can obtain financial freedom. We read about the rich and famous who go bankrupt because they did not manage their money correctly so remember it’s not how much you earn, it’s how you manage it!