2. Only use credit cards for bills you know you can pay that month. Credit cards are not free money. Interest rates on credit cards are huge, even if they don't make you pay them immediately. Managing your money wisely means using your credit cards wisely-- as extensions of your budget, not separate budgets. That said, responsible card use helps to build credit, which is required for home and car loans. Some crucial things to remember include:

• Read all of the agreement form before signing up for your card. What is the monthly interest rate? How is minimum payment calculated? Are there annual or overdraw fees?
• Always try and pay more than the monthly minimum. If you pay the entire balance each month, for example, you won't pay any interest down the road.
• One credit card is enough -- juggling multiple bills and statements is a surefire way into credit card debt.
• Curb spending on credit so that you stay within 30-40% of your limit. You should never get close to your limit, as this is often difficult to repay without exorbitant interest rates.

3. Know your purpose when shopping. Impulse buys are the bane of smart shoppers and money managers. You need to ask yourself, before buying anything, do you need this to live? Will you enjoy it for a long time, or is it a fleeting pleasure? Avoid shopping as a recreational activity, instead saving it for the essentials.

• Making grocery lists will keep you on track in the store, helping save money and plan meals effectively so no food is thrown out.
• Never buy something just because it is on sale -- you are still spending money, no matter how much the advertisement talks about "savings."

4. Do your research before making any big-ticket purchases. Car shopping, for example, is not the time to turn into an impulse buyer. It is also not the time to get swept up in a sales pitch, no matter what the car dealer is trying to tell you. You can save tons of money by taking 2-3 hours to research cars, house, home theater systems, etc. in advance before you go shopping, avoiding rip-offs and getting what you came for and nothing more.

• Browse online and set an appropriate spending cap -- the absolute maximum you will spend on a car/house/etc. Be very strict about this cap, no matter what a salesman says.
• Look up how much the object should cost and memorize the number.
• Check the prices at 2-3 different vendors to compare them. If you feel comfortable negotiating, you can mention to a vendor that you've found a similar or better price and ask them to lower theirs.
• If you have time to spare, wait and look for sales. Typically, for example, car dealerships offer sales in the summertime.

6. Take out the money you can spend in advance if you have trouble saving. If finances are tight, one of the best ways to keep from overspending is to take out the total amount you have to spend, in cash, at the beginning of the month. Separate it out into envelopes, one for food, gas, rent, etc. so that you know exactly how much you have. Leave your debit / credit cards at home. It is a lot easier to simply swipe a debit or credit card without thinking about the dollar value of a purchase. If you have to hand over the same amount in cash each time you buy a non-essential item you are much more likely to pause.