Money management is extremely important to your financial well being

10 Basic Rules For Money Management

Money management is important to your financial well being. Here are 10 basic rules to help you get your finances into shape.

1. Plan your finances. Plan for your families future, any major purchases you require to make & for the periodic expenses that come up ever so often such as birthdays & holidays.

2. Make long term & short term financial goals. This includes everyone in the relatives. Helping children learn the benefit of setting financial goals will help them in the future. By learning to manage money, your children will be better in their own financial situations.

3. Know your financial situation. You should know what your monthly & periodic expenses are each month. You should know what your monthly income is & keep track of your amount of debt.

5. Trying going without your credit cards & learn to live on your income only. Even try paying over the minimum payment amount on your credit card balances.

4. Develop a budget & stick to it. Do a planning budget & then compare it to your actual budget to see what you have actually spent. Learning to stay within your planning budget will help you develop better financial situations.

6. Save money for a rainy day. Put away some money each month. Literally pay yourself a small amount each month so that you are putting away some money for various things. By trying to put away 5% to 10% of your money each month, you will have a reserve fund that will help with most emergencies. Having a reserve fund of 6 months to 1 years worth of living expenses will help you keep from ever having a complete financial breakdown.

7. Keep up on your bills. By paying your bills on time & in full, you will begin to build a good credit history. good credit becomes such a necessary thing these days & by protecting yourself you will keep your expenses such as interest rates & fees down. This will help your financial situation greatly. If for any reason you are unable to pay a bill on time, contact your creditor & work out an arrangement. Do Credit Repair on any inaccurate information on your Credit Report.

8. Know the difference between your needs & your wants. You must make your needs a priority & get those things on your require list when everything on your needs list has been met. Getting things on your require list is great but without taking care of your needs first, you are generating problems to your financial situation.

9. Control your credit. Don't let your credit control you. If you use your credit wisely, you can make good use of your credit & help your credit score. Your credit payments should never exceed over 20% of your net income. By knowing that figure than you can use your credit wisely to help you purchase things that you can not pay for to begin with. Automobiles & Homes are generally things that you should put into those categories, but you can even use it for recreational items such as Vacations, hobbies & other activities. never ever use your credit to pay for another credit item. For example, never use six credit card to make a payment on another credit card. you are paying interest one times & just throwing money away.

These suggestions are meant to help you determine where you can generate opportunities for a better financial situation for you & your relatives. By following this advice you will find yourself in a stronger financial situation & teach your children how to better handle their finances.

10. Know your daily expenditures. If you are aware of where your money is going, then you can control where you money goes for the future. A spending diary will help you keep track of that information. one times you know where they money is going better control can be made where necessary. You may not realize that you're spending $20 a day on a sandwich & coffee because you feel that you're spending a couple bucks here & a couple of bucks there. But they add up & seeing the total each day of where your money is being spent will often open up your eyes to where money can be saved.