A Step By Step Guide To Manage Your Money

bypatjames1

428 followers

Updated 9 years ago

Do you need to follow a step by step guide to manage your money? Or- are you one of those people who still have money you received as a birthday present or earned while babysitting. That is a long stretch for some of us who now have children that babysit. But I used that statement to make a point.

Some of us do not need a guide to help control money in our lives. But there are others of us, and I know a few people myself, who still spend money like it’s burning a hole in their pockets. They spend money like there is no tomorrow or like it can be plucked from the nearest tree like fruit. :)

I know I am exaggerating somewhat. But it takes all kinds to make up the world. And I am not judging, just stating the facts.

NEWS FLASH!….. Just because you are the owner of an on line marking business, doesn’t mean you are exempt from having money problems.

And hopefully this step by step guide to managing your money will be a welcome help to you. Here are the steps. You will have to put them in order according to your needs, okay.

1. Earning Your Money

For most of us we probably spend most of the money we earn from our jobs on things we want and need right away. Like so many people working on an 8am-5pm job say, “I am living pay check to pay check, with little or no money left over for anything else.”

However, you will find many more opportunities to work for yourself. This has advantages: You are your own boss and get all the money you earn. You can often work when you want and as often as you want.

Robert Kiyosaki, Author of Rich Dad Poor Dad states, ” The main reason people struggle financially is because they have spent years in school but learned nothing about money. The result is that people learn to work for money….but never learn to have money work for them.”

2. Spending Your Money

Based on government data (https://www.bls.gov/cpi/cpid1201.pdf) from the Bureau of labor Statistics (Credit: Lam Thuy Vo / NPR), review the breakdown on what an average American household buys. Take a moment to find out how you fit on this chart. Then think about how you plan to fit and how much you plan to spend as you become more and more successful. Do not forget to revisit your future lifestyle section of your business plan.

3. Banking Your Money

Banking helps you control your spending through a checking or savings account. If you want something you can not afford right away, the best way to get it is to save for it. Banks help you save for emergency and high dollar items. There is short and long term savings. Banks are safe, make your money grow and offer other helpful services. You can control the debts and credits of it all by watching your checking account balance. And, sometimes banks make it harder for you to get to your money allowing you to think twice before you spend it. Only 7.7% of adult Americans do not have a banking account. (American Family Financial Statistics) And about 80% of all sales in the nation are paid for by check or credit card.

4. Sharing Your Money

This is something most of us haven’t had the luxury of doing. We just don’t make enough money ourselves to give any away. But this is a mindset you might want to develop because it helps people who are less fortunate than you, it helps you to become the responsible person who cares about injustices in the world and it will make the world a better place to live. What if everyone shared money, things, donations, or their time-be a volunteer? Giving your money and your time can be fun and even more rewarding that spending money!

5. Borrowing Money

A person’s ability to borrow money is directly related to his or her credit rating. The word “credit” comes from the Latin “creditum something entrusted to another.” You may trust a friend to pay you back the money they owe you, but banks and other financial institutions have to be more businesslike. They will evaluate your:

• Income
• Job History
• Credit Score
• Credit History

A credit card is another way to make purchases if you don’t have the money right then. It allows you to buy merchandise and services up to a limit set by the bank. There a more than 7,000 credit cards available to consumers. Most of them fall into two categories:

Major Credit Cards – these are national or international companies, such as Master Card, Visa, American Express, Discover, that offer their cards through a bank, another financial organization, or a large business. These four card types are rated the top credit card offers for May 2015. <- click here to see lowest rates, reward program, top companies, card type and credit rating.

Business Specific Credit Cards – These credit cards are issued by individual businesses such as department stores and oil companies. They can be used only to buy from branches of the store or from gas stations operated by the oil company.

“Single, attractive, successful professional looking for everlasting love. Must adore animals, walks in the park. Please respond with a list of all debts and your credit report. No report, no reply.”

That’s the type of singles ad we’d really place, if we were honest. According to a new CreditCards.com survey, attitudes regarding debt loom large over any relationship, and that’s especially true for women.

Do you agree? Whether you agree or not, I have found three rules of using a credit card:

1. Don’t buy on impulse – pay attention to the prices and keep track of the total, it will all have to be paid back.
2. Payoff your bill each month – the interest can be as high as 29%
3. Stay within your credit limit – avoid the over the credit limit penalty