What is Money Management and Why should you bother?
Money Management has the power to lead to debt free living and financial security. It’s simple enough that anyone can apply its principles and see results. In fact it’s a GPS to taking control of your personal finances.
Let’s start with the second part of the question: Why should you bother?
Ask yourself this: what would it be like to have:
Peace of mind: (You don’t have to spend sleepless nights worrying about money; you have a plan, goals, you know where you are, where you want to be and how to get there)
Choice/Flexibility: (After a time, you’ll have enough resources to decide if you are happy continuing in the career/life that you have or if you feel secure enough to quit and follow your real passion )
Wealth: (It’s amazing how much you can accumulate over time if you commit to the right personal finance habits. Managed properly, a little can go a long way)( Have your Money Work for You rather than the other way around!)
A simpler life: (You don’t have to buy stuff to keep up with the Jones. You know what you have and don’t need to impress anyone)
Financial knowledge: (Once you start seeing results, you’ll probably want to learn more, further maximizing your money)
Freedom: (Time to do whatever you please or go wherever you want, because you planned for it)
With that said, what is money management?
It’s a multi-step approach to direct your financial life. It consists of:
- Knowing where you stand financially
- Setting Goals
- Creating a budget or spending plan
- Saving regularly
- Living within your means
- Protecting your identity and other assets
- Eliminating debts
That’s All folks! Yes, money management is Simple, but the commitment to do it can be hard. I once read that if you do something for 21 days it becomes a habit. All you need to do is start. Let me tell you how.