Money Management
- R. Nicole
- Feb 25, 2020
- 2 min read
Money management is an essential tool for having a debt-free life or lifestyle. A common type of money management is personal budgeting. This involves tracking and limiting your daily expenses to save money or to simply know where your money is going. Money Management is something that has plagued the average American household. Currently, the average American household has at least $132,529 worth of debt. Much of this debt comes from student loans and credit cards. Hence because of this money management can be a stressful and touchy subject.
Many people experience a lot of anxiety when they think about their financial circumstance and this anxiety can create other health issues if you're not careful. So maybe have not started saving for retirement as of yet or you didn't start saving as early as you’d hoped. Maybe you didn’t get an emergency fund in place and some unforeseen circumstance happened that cause you to ended up in a lot of debt. Whatever your circumstances may be, its time to decide to take control of your situation now. The first step to money management is to optimize your income and start saving. Attempt to live on ONLY 60 percent of your income. As it relates to the other 40 percent use 20 percent to increase payments to pay off debt and the other 20percent can go into a high-interest savings account or IRA. I recommend you start paying off the smaller debts first. This way you can see progress and won't get discouraged on the journey to a debt-free life. Just remember the quicker you can pay off the smaller debt the more money you will have to pay off the larger debts. So let's manifest a change in your finances. Do a monthly challenge to save and start a budget. On my resources page, you will find a monthly money challenge and a budget worksheet. Just know you can make it happen. The time to start is now.
Just know that if you need any help or motivation you can book me for a consultation which is FREE or I can be your money management coach and help you come up with a financial plan.
You can also check out the resources page for budget sheets and savings worksheet.
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