Money Do’s and Don’ts – How to Manage Your Money

Money management is the most important skill you need to learn in life. Knowing how to spend and save money will ultimately lead to a better and easier life for you and your family. 

Do: Pay Only with Cash 

It is vitally important to only use cash when you are out shopping. This is the perfect way to avoid impulse buys and limit your potential spending. Not only will you be able to budget your spending before going out, but you will also be more cognizant of your spending after physically handing money to the cashier. It is far too easy to overspend and ignore your budget when paying with a credit card. This habit will also help you avoid building a lot of debt. 

Do: Know Your Options After Emergency 

There is a good chance that you will have a financial emergency at some point in your life. It can be hard to prepare in advance for an unexpected household or urgent automobile repair, so you need to know your financial options. If you find yourself in a financial pinch, and don’t have the money in your savings to cover the unexpected emergency expense, one option is to apply for a line of credit. This lets you pay for the unexpected expense while you get back on your feet. It is always advised to pay off the loan in a timely manner by using proper money management techniques. 

Do: Put Money in Savings 

The idea of saving for a rainy day may seem like a simple concept, but it is often ignored by people with poor money skills. It is generally recommended to put roughly 20% of your income into a savings account. While this may not be possible every month, it is still important to always put a portion of your earnings into savings. You simply never know when you will need some extra money, so it is important to save as much as possible. 

Don’t: Ignore Upcoming Expenses 

The mortgage, utilities and other monthly expenses are all due at the same time every month. Since it is so easy to prepare for these upcoming expenses, they should never be ignored. If you know that you barely have enough money in the bank to cover the car payment in a few days, then you should not go out on a spending spree. 

Don’t: Frivolously Spend Money 

Money management is the most important skill you need to learn in life. Knowing how to spend and save money will ultimately lead to a better and easier life for you and your family. 

Do: Pay Only with Cash 

It is vitally important to only use cash when you are out shopping. This is the perfect way to avoid impulse buys and limit your potential spending. Not only will you be able to budget your spending before going out, but you will also be more cognizant of your spending after physically handing money to the cashier. It is far too easy to overspend and ignore your budget when paying with a credit card. This habit will also help you avoid building a lot of debt. 

Do: Know Your Options After Emergency 

There is a good chance that you will have a financial emergency at some point in your life. It can be hard to prepare in advance for an unexpected household or urgent automobile repair, so you need to know your financial options. If you find yourself in a financial pinch, and don’t have the money in your savings to cover the unexpected emergency expense, one option is to apply for a line of credit. This lets you pay for the unexpected expense while you get back on your feet. It is always advised to pay off the loan in a timely manner by using proper money management techniques. 

Do: Put Money in Savings 

The idea of saving for a rainy day may seem like a simple concept, but it is often ignored by people with poor money skills. It is generally recommended to put roughly 20% of your income into a savings account. While this may not be possible every month, it is still important to always put a portion of your earnings into savings. You simply never know when you will need some extra money, so it is important to save as much as possible. 

Don’t: Ignore Upcoming Expenses 

The mortgage, utilities and other monthly expenses are all due at the same time every month. Since it is so easy to prepare for these upcoming expenses, they should never be ignored. If you know that you barely have enough money in the bank to cover the car payment in a few days, then you should not go out on a spending spree. 

Don’t: Frivolously Spend Money 

It may be tempting to spend a lot of money after your paycheck hits the bank, but this is a horrible habit. Life is far too unpredictable to spend your money as soon as comes in. It is best to wait a few weeks before making any big purchases. If you still have extra money after paying your expenses and adding to the savings account, then you can go out and treat yourself to something nice. 

Just about every aspect of life requires money, so you need to take money management seriously. If you follow these five tips, then you will have the financial stability and security to fully enjoy the rest of your life. 

It may be tempting to spend a lot of money after your paycheck hits the bank, but this is a horrible habit. Life is far too unpredictable to spend your money as soon as comes in. It is best to wait a few weeks before making any big purchases. If you still have extra money after paying your expenses and adding to the savings account, then you can go out and treat yourself to something nice. 

Just about every aspect of life requires money, so you need to take money management seriously. If you follow these five tips, then you will have the financial stability and security to fully enjoy the rest of your life. 

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