The economy can be unpredictable, so it’s more important than ever to handle your money in a practical manner. Here are some practical ways to handle your money so you can continue to thrive.

1. Don’t outspend what you earn. This seems very simple, but many people do indeed spend more than they earn, especially if they have a credit card. It can be really easy to fall into a credit card trap, so be very careful about keeping your spending to a fraction of the total income you have every month.

2. Set a clear budget. This way, you know what is coming out and what is going into your bank account. Getting a clear picture of what things truly cost will help you think before you pay for them. You will get a good idea of what is important and what is not.

3. Pay your credit card in full and then consider cutting it up. Credit cards can be a trap, as mentioned, because you usually don’t have to pay the entire card balance off at the end of the month. The amount you don’t pay accrues interest until you are paying double or triple what you spent on what you bought! Do your best to eliminate the interest headache by paying off the entire balance as soon as you can.

4. Think about your retirement. This is a topic most people don’t think about until they are of retirement age, but planning early is better overall for your finances. Planning early gives you more time to save, but it also allows you to start with smaller amounts.

5. Have some savings. People also overlook this, but it is imperative that you have money set aside in case of an emergency. Put some money aside every month and eventually you will have a substantial amount to spend on anything that goes wrong.

6. Consider investing. There can be safe investments, so you needn’t worry that your personal finances will get even worse! You can invest in bonds, mutual funds, and real estate, all of which will give you more income, which will make your personal finances easier to handle.

7. Make the most of your insurance. Investigate your health insurance to find out where you could be saving money, and whether it would make more sense financially for you to buy another health insurance plan. A lot of people just go with the health insurance plan they are given, when some research might prove that they could save money elsewhere.

8. Keep your financial records well. Good financial records indicate that you know exactly what is going on with your money. You know where every dollar is, and that can be helpful when you feel tempted by impulse purchases that aren’t good for your financial picture.

Keep these guidelines in mind, and you will find that your financial picture starts to come into focus. Be careful with your finances and you will be able to relax in your life, as your finances are in order.