Learning effective money management not only enables you to live comfortably within your means, but also helps you to increase your wealth. Use these money management tips to stay in control of your money!
Money management is a means to an end. However, make sure your goal practical and be sure the "end" is in clear sight. Although your money management goal may be to have a comfortable retirement, start small with objectives like paying off a credit card within X number of months or saving $X by the end of the year. In money management, like in any regimen, there's nothing like the satisfaction of success to keep you on track! Know what you have.
Although our money is an asset and all of our assets are types of our money, generally we're more inclined to think of assets as property. However although all of our possessions are parts of our wealth that we can turn into cash, usually we want to protect these possessions from creditors. For instance, you probably don't want to sell your car or cash in a valuable coin collection to pay a bill. Yet, the ability to convert property to cash is a good concept to remember in identifying and effectively managing your money.
Some assets like vehicles and appliances depreciate (decrease in value) over time. Yet, while they don't increase spending power, you can turn them into cash.Long-term assets like real estate holdings, investments (stocks, bonds, etc), and personal property such as collections, artworks, and antiques appreciate (increase in value) over time and actually enable us to save money and increase our wealth.
Money management is a means to an end. However, make sure your goal practical and be sure the "end" is in clear sight. Although your money management goal may be to have a comfortable retirement, start small with objectives like paying off a credit card within X number of months or saving $X by the end of the year. In money management, like in any regimen, there's nothing like the satisfaction of success to keep you on track! Know what you have.
Set a Money Management Goal
Before you can live within your means, you need to know what your means are. Start money management by taking stock of your money. You'll probably be surprised at how rich you really are! As well as the cash in your pocket or purse, include piggy bank cash and bank balances. Go on a treasure hunt to find lost money. Look in coat and trouser pockets, through birthday and other greeting cards, jewelry boxes, dresser drawers, under furniture cushions, behind and under furniture, in your freezer, and under your mattress!Although our money is an asset and all of our assets are types of our money, generally we're more inclined to think of assets as property. However although all of our possessions are parts of our wealth that we can turn into cash, usually we want to protect these possessions from creditors. For instance, you probably don't want to sell your car or cash in a valuable coin collection to pay a bill. Yet, the ability to convert property to cash is a good concept to remember in identifying and effectively managing your money.
Some assets like vehicles and appliances depreciate (decrease in value) over time. Yet, while they don't increase spending power, you can turn them into cash.Long-term assets like real estate holdings, investments (stocks, bonds, etc), and personal property such as collections, artworks, and antiques appreciate (increase in value) over time and actually enable us to save money and increase our wealth.
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