How To Manage Your Money Blueprint A Simple Debt Free Guide On Money Management & Financial Independence

By Jason Ramsey

You should consider what are your long-term and short-term goals? Are you planning for retirement or just for a nice new car? Once your goal is clear, you can set a practical way to achieve that goal. How much money is coming in? What are the risks and rewards with your plan?

Do you or will you have student loans? It is important that providers make sure you know what your financial obligations are in relation to paying your debt. Work them into your budget every month and do what you can do pay down your student loan debt when you can.

Money management is a crucial process for attaining financial success by managing money that includes expenses, investments, budgeting, banking and taxes. 

It enables you to know where your money is going and also it helps you plan your budget wisely. It's a fundamental process that determines what you can do and what you can't.

 

If you are behind, as many are, when it comes how much you are saving for retirement, get in high gear and  catch up. Adding a little extra per month than you normally would to your retirement plan, can catch you up faster than you think it will. Especially, if it concerns your 401k, because your employer will match a certain percentage of your contribution. You must figure out how much revenue versus expenses you have. This requires following a strict budget and adhering to it always.

If you're working on improving your personal budget, one easy way to get yourself in the mindset is to get your paycheck put directly into an investment account rather than checking or cash. This way you pay yourself first, think of this as a tax but you get it for retirement. This will help get you in the habit of saving money and not thinking of it all as disposable income. In order to be economically wise, all of your disposable income must now be considered as investment funds, only to be spent on assets that return you funds at a good rate.

 

If you know that a budget is probably the difference between you keeping money on the side during the good times and having nothing when the bad times come knocking, then you'd do everything possible to make sure that you prepare a SMART budget.

 

When you're honest with yourself, you'll agree that to a great extent, money is key to having peace of mind. It's easy to say God provides when you're not in need. But when you're neck-deep in debt and you don't have money to pay for this month's rent, you'll probably be singing a different tune. 

 

No matter how much you want to finance the great work your church or your favorite charitable organization is doing, you can't do that without extra money. If you aren't able to provide for your needs, how can you provide for others'? 

 

If you're ready to start successfully managing your personal finances, click and BUY NOW! 

• Language: English
• Publisher: Jason Ramsey
• Release date: Feb 2, 2020
• ISBN: 9781393418436

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Introduction

Personal finance management is gaining an understanding of your finances, so you get to make the most out of your assets in your day-to-day experiences. With personal finance management, you are saddled with the responsibility of analysing every area of your finance, and that entails your income, cash flow, capital, family security, investments, standard of living, assets, savings and daily expenditure. 

For personal finance to be managed appropriately, it is essential that you become conversant with the concept of record keeping. The various aspects to be considered above cannot be handled well enough if you don’t have a trail of records that tell you exactly how you use money. The management of finance also entails planning. 

This process is also all about the importance of observing one’s cash flow, income growth and areas of weakness. Personal finance management isn’t a one-off process; it is a lifestyle. What we will achieve here is just the beginning so get ready to learn more and increase your knowledge base like never before. You know what personal finance management is, it is time to discover why everyone needs it. 

Getting to know about a concept isn’t enough reason for you to get involved with it immediately. We are still dealing with the basics of the subject matter, but before we go on to explain further, you need to know why there is a need for personal finance management. Are there benefits when a person becomes conscious of managing finance? If there are benefits, what are they?

Money management is a crucial process for attaining financial success by managing money that includes expenses, investments, budgeting, banking and taxes.

It enables you to know where your money is going and also it helps you plan your budget wisely. It’s a fundamental process that determines what you can do and what you can’t.

The main ideas of money management are to help you set goals, get organized, track spending, build a budget and saving money. There are rules and tips that will help you for the rest of your life if you apply them and have them in mind.

The Basics - Savings

Taking care of your financial life is taking care of your health, your family, and yourself now and in the future when you’re old and cannot work to support yourself. If you take care of your finances today you can even help out your children with their future financial needs. Taking care of your finances is a way of saying I love and respect myself, as well as my family. Let’s get started. Here is one thing you should to do right away.

Create an Emergency Account immediately with a minimum of three months ideally six months of savings to cover living expenses and pay for emergency items. Why? Because the average time it takes to recuperate from misfortune is approximately one to six months. If you get into a big car accident the recuperation time is roughly one to three months, and surgery takes about three to six months recovery time. A big percentage of people’s average monthly expenses range from $2000 to about $10,000 a month. Let’s say that your monthly expenses are $3000 per month multiplied by three months gives you $9000 to use for an emergency. For example, let’s say you get into a car accident, the funds can be used as a down payment for your new vehicle as well as paying for a rental car. Other emergencies like your car breaking down or someone trying to sue you are reasons you can use your emergency account. If you are living paycheck to paycheck you are one paycheck away from being homeless. Think about that! One paycheck away from being homeless. So if you have three to six months saved in an emergency account you can pick yourself up from challenges life throws your way and never have to put yourself nor your family in the tough situations of being homeless or begging other people for food or money, or losing your spouse. Yes, you heard me right, losing your spouse. Statistics state that a huge percentage of divorces are due to some sort of financial reason. So if you take care of your finances you can always solve other relationship issues that may arise without money pressures. All relationships have arguments and disagreements but when your finances are in bad shape, you are living paycheck to paycheck, and are constantly working full time; one little argument can sometimes turn into a big argument because of the stress created by not being financially healthy. Now, if you and your spouse are financially in good health and you get into an argument, at least you don’t have money stress, and can look at the argument for what it is. This allows you to have a different outlook on the issue, and perhaps a little more patience. I’m not saying money can fix all relationship problems; it just takes off some of the pressure. Furthermore, many divorces arise from lack of financial compatibility. Meaning, one person is a financial wreck and the other person in the relationship is good at finances or wants to better his or herself financially. Don’t want to spend a lot of time talking about divorce here, however, I believe it’s very important to include this fact since we are talking about family finances. I didn’t mean to derail myself by speaking about divorces, so let’s get back to your emergency account. An emergency account is not an option so please start your emergency account today. Many people ask me how much should I start putting in the emergency account? The answer is whatever you can afford, if you can only start with $20 or $30 dollars a month that’s a good start. An ideal amount to start with your emergency account should be a minimum of $100 dollars, but if all you can do is $50 start with that. If you can afford to put more money into your emergency account every month, I encourage you to do it. Some people do not have an emergency account simply because they never heard of one, or they don’t know why it’s important to have one. Other people simply don’t have an emergency account because they try to live like the Kardashians and attempt to buy things that make them look rich when in fact they are not. When you try to keep up with the Kardashians without having their wealth, you are only getting yourself into a bigger financial hole. To want luxurious things is healthy and good because we live in an abundant universe, however, how you go about acquiring those things is