Money Management Skills -
Create A Budget!
It is very important to create and implement a budget into your finances. If you do not budget, then you are not keeping track of where your money goes. You are also not setting limits on where your money can go. Budgeting is a tool that allows you to not only track money but by separating it into categories, you gain the ability to plan. This helps you set limits, save more, and do more with your money.
Debit Cards Or Cash?
The debit card is the preferred method of spending cash in today's world. However, it has been proven that when using your debit card you will likely spend more money. Not actually seeing the money pass through your hands takes the emotion out of spending it. There is more than just convenience behind the idea of banks getting you to use debit cards. Debit cards cause more impulse purchases, and you spend more when you use a debit card. Therefore, use cash as often as you can.
Pre Plan With A Shopping List!
Pre-planning is one of the most important money management skills. If you make a shopping list, then you are more inclined to buy what is on the list instead of making scattered impulse purchases along the way. Groceries are expensive, and they add up super fast. Make a list so that you will know what you need. This also prevents waste at home which is also throwing away money.
Balance Your Checkbook!
If you do not balance your checkbook, then while you may be budgeting, you are still in the dark as to planning out your finances. You must know what your balance is in order to keep track of your planning and spending.
Get Monthly Bank Statements!
Many businesses require bank statements for a variety of reasons, when you wish to do business with them. You also need bank statements to refer back to, in order to make sure your budgeting and planning are going smoothly. Perhaps you need to review a purchase or a balance at a certain point in time. Maybe you need the bank statements for tax purposes or to attain a mortgage; either way, keep your bank statements. Earn a $50 bonus when you open an Electric Orange℠ checking account from ING DIRECT. Free ATMs and no overdraft fees.
Spending Habits - Curbing Your Impulses Is Vital To Personal Money Management
Impulse buying is going to happen occasionally, but it should be limited to next to nothing. You should operate within your budget in order to be well off financially. Your personal financial situation can be ruined by breaking this one rule, if you choose to impulse buy excessively. Limit your impulse buying as much as possible.
You Must Pay Yourself First!
Put money into your savings before you ever do anything else. Make sure you do this according to a personal finance budgeting plan so you know what you are supposed to save and do so. You should have an initial emergency fund of $1,000, and after you have reached this goal you need to strive for three to six months worth of living expenses in a liquid savings account.
Debit Card Or A Credit Card?
If you have the choice to use a debit card or a credit card, use the debit card. While you may be in the position to pay your whole credit balance at the end of the month, do not take it for granted. Use credit minimally, as you never know when your situation can change. Instead, use a debit card and put money away in savings and investments at a quick pace.
Many people struggle with personal finance and money management. They impulse buy many things without ever writing up a budget or a plan. If you track all of your necessary expenses and spending as well as budget accordingly, money management is much easier. Utilize the tips in this article, and you will find yourself moving toward personal financial success.
- Why You Need A Budget
- Creating A Budget
- What is your Household Income
- Budget Planning with a Variable Income
- What are Your Household Expenses
- What's Your Debt Load
- Percentages-Creating Realistic Household Budget
- Personal Budget Planning
- Budget Recipes
- Budget Friendly Family Entertainment
- Budget Family Vacation Ideas
- Saving With Coupons!
- Money Problems & Children
- Money Management For Children
- Teenagers Money Management
- Student Credit Card?
~ Paul Clitheroe
To achieve financial freedom, ideas such as: listening to good advice, learning how to make a budget, understanding credit repair possibilities, avoiding the scams, and generally becoming more knowledgeable of the credit card business, can all play a role in eliminating credit card and other debt. There is A smarter way to manage your money.