Monday, July 2, 2012
Money management is the process of knowing where you are spending your money today and having a well-thought-out plan in place for where you want it to go in the future.
For good money management one must know some of the principles that s/he can use for the plan to work out,
A budget is simply a plan for what you want to do with your money. It sets restrictions on spending, but it does not have to be oppressive. And by sticking to it, you will have the money for the things that are important to you. Though everybody’s budget is different, there is one consistent rule: expenses should never exceed income
4.TRACK SPENDING
Many financial problems, such as not being able to achieve your goals, having credit card debt, and not being able to save, stem from not following the golden rule of money management: spending less than you earn. Are you currently following the golden rule? By tracking your purchases, you can see how much and what you are spending your money on.
For good money management one must know some of the principles that s/he can use for the plan to work out,
- Set goals
- be organised
- make a budget
- Track spending
- Save money
- SET GOALS
Set specific goals
Financial goals should be specific. For example, wanting to save a certain amount for retirement by age 60 is goal, but wanting to be rich is just a wish. Before you start to save, determine exactly what you want, when you want it, and how much it will cost.
Financial goals should be specific. For example, wanting to save a certain amount for retirement by age 60 is goal, but wanting to be rich is just a wish. Before you start to save, determine exactly what you want, when you want it, and how much it will cost.
There are three basic goal types: short-term (achievable in under a year), mid-term (achievable in one to five years), and long-term (achievable in five-plus years). If you have multiple goals, you may choose to work toward them all at once or concentrate on one and then move to the next.
You can use the Financial Goals Chart to list your goals:
2.BE ORGANIZED
Being organized is essential to efficient money management. Once all of your information and paperwork is in order and accessible, you’ll never have to waste time searching for important documents, wonder about account balances.3.MAKE BUDGET
A budget is simply a plan for what you want to do with your money. It sets restrictions on spending, but it does not have to be oppressive. And by sticking to it, you will have the money for the things that are important to you. Though everybody’s budget is different, there is one consistent rule: expenses should never exceed income
4.TRACK SPENDING
Many financial problems, such as not being able to achieve your goals, having credit card debt, and not being able to save, stem from not following the golden rule of money management: spending less than you earn. Are you currently following the golden rule? By tracking your purchases, you can see how much and what you are spending your money on.
Accuracy and commitment are vital.
5.SAVE MONEY
Setting aside cash on a regular basis is a habit worth getting into. It allows you to achieve your financial goals and provides a safety net during financially-challenging times.
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KNOW HOW TO MANAGE YOUR MONEY
Money management is the process of knowing where you are spending your money today and having a well-thought-out plan in place for where you want it to go in the future.
For good money management one must know some of the principles that s/he can use for the plan to work out,
A budget is simply a plan for what you want to do with your money. It sets restrictions on spending, but it does not have to be oppressive. And by sticking to it, you will have the money for the things that are important to you. Though everybody’s budget is different, there is one consistent rule: expenses should never exceed income
4.TRACK SPENDING
Many financial problems, such as not being able to achieve your goals, having credit card debt, and not being able to save, stem from not following the golden rule of money management: spending less than you earn. Are you currently following the golden rule? By tracking your purchases, you can see how much and what you are spending your money on.
For good money management one must know some of the principles that s/he can use for the plan to work out,
- Set goals
- be organised
- make a budget
- Track spending
- Save money
- SET GOALS
Set specific goals
Financial goals should be specific. For example, wanting to save a certain amount for retirement by age 60 is goal, but wanting to be rich is just a wish. Before you start to save, determine exactly what you want, when you want it, and how much it will cost.
Financial goals should be specific. For example, wanting to save a certain amount for retirement by age 60 is goal, but wanting to be rich is just a wish. Before you start to save, determine exactly what you want, when you want it, and how much it will cost.
There are three basic goal types: short-term (achievable in under a year), mid-term (achievable in one to five years), and long-term (achievable in five-plus years). If you have multiple goals, you may choose to work toward them all at once or concentrate on one and then move to the next.
You can use the Financial Goals Chart to list your goals:
2.BE ORGANIZED
Being organized is essential to efficient money management. Once all of your information and paperwork is in order and accessible, you’ll never have to waste time searching for important documents, wonder about account balances.3.MAKE BUDGET
A budget is simply a plan for what you want to do with your money. It sets restrictions on spending, but it does not have to be oppressive. And by sticking to it, you will have the money for the things that are important to you. Though everybody’s budget is different, there is one consistent rule: expenses should never exceed income
4.TRACK SPENDING
Many financial problems, such as not being able to achieve your goals, having credit card debt, and not being able to save, stem from not following the golden rule of money management: spending less than you earn. Are you currently following the golden rule? By tracking your purchases, you can see how much and what you are spending your money on.
Accuracy and commitment are vital.
5.SAVE MONEY
Setting aside cash on a regular basis is a habit worth getting into. It allows you to achieve your financial goals and provides a safety net during financially-challenging times.
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