Personal Money Management Part 3
Posted by Admin
Setting Priorities and Making Changes
Setting priorities and making changes is a continuous process meaning that as your life circumstances change, so should your money management plan. But this is a good starting point to begin to think about your goals for the future, including your financial goals.
Goals provide focus, purpose, vision, and direction for your life and your money management plan.
Goals can be either short-term or long-term. Some examples of short-term goals are:
· You want a new pair of shoes for work, your goal would be to save money to buy the shoes.
· You want to buy a microwave oven for your apartment, so your goal would be to save money to buy the microwave.
Some examples of long-term goals in are:
· Do you wish to buy your own house? Your goal is to save money for a down payment on a house.
· Do you want to go to college? Your goal is to save money for tuition.
If you have children, think about involving them in the process of thinking about and deciding which goals are important for your family and the ways in which they can help the family achieve those goals. With the entire family supportive of both long- and short-term goals, it will be much easier to be successful in reaching your goals!
Some final points to remember:
- Everyone’s money management plan is different.
- Money management plans change as your life changes.
- Money management plans should be flexible! They should not rule your life, but they should help guide you.
- Your money management plan should help you meet your financial goals.
- Keep your money management plan simple!
- How much money you make is not as important as how you use what you have.
- A money management plan is for everyone.
Personal Money Management Part 1
Posted by Admin
Do you feel like you do not have enough money? Try as, do you have a difficult time paying your bills? Can you barely make a living out of your paycheck?
Many women expressed these same frustrations. Sometimes we splurge on a good pair of shoes or a nice dinner with friends. Or, we forget someone’s birthday and at the last minute and left without buying a gift. Or, simply can not seem to stretch our salary to pay all our bills.
That’s why it is important to begin to find out where our money goes – every year, month, week or even every day. The following information provides some basic guidelines to help you develop your own plan for managing money.
Personal Money Management is a plan for managing income and expenses. It tells how much money you have and how much you spent. It also tells you how much you can afford in the future. It tells you what you can and if you can afford.
With a personal money management:
- You can plan how to spend your money so that you do not get into financial trouble.
- You will be in full control of your money.
- You will be prepared for emergencies
- You can avoid getting into serious debt.
It also provides you with economic security and have the ability to plan long-term goals such as buying a car, buying a house, or going on nice vacations.
How do we start?
There are four steps in developing your Personal Money Management Plan:
1. Listing your expenses.
2. Listing of income sources.
3. The comparison of income and expenditure
4. Set priorities and make changes so that your income will exceed its costs.
