Breaking Up with Bad Credit: How to Reduce Your Debt and Increase Your Credit Score

By Violet Willett

If there's anything 2020 and the COVID-19 pandemic taught us, it's that we need to be financially prepared for whatever life throws our way. A survey by CNBC + Acorns In You shows that over 46% of respondents started saving up their money because of the pandemic, which mar

• Language: English
• Publisher: Bliss Drive Media, LLC
• Release date: Mar 26, 2021
• ISBN: 9781736555132

Book preview

Chapter 1 — Money Management and Why It’s Important

Money management is a skill like any other, such as learning how to properly iron a shirt or cook a meal. And just like these skills, managing your money is something that will come into play throughout the course of your life.

At its core, money management is made up of small habits that you practice everyday. However, it’s also important to know why you’re following these habits to begin with. This chapter is a brief introduction to what money management is and why you need to care about it. 

The Importance of Managing Your Finances

Money may not buy happiness, but there are a lot of benefits to managing your money properly. There’s no escaping the fact that money underlies most of (if not all) of the decisions we make in life, so forming great management skills allows you to be in control of your finances—and not the other way around. Below are a few other key reasons why managing your money is absolutely essential: 

It Lets You Achieve Your Goals

Let’s face it: every aspect of life depends on money. By managing your money properly, you can focus your money on the things that are most important to you. It may be getting out of debt, going to college, saving up for a home, or working on starting your own business.

When you have control over your finances, you’ll be able to prioritize your spending, track how you are doing, and realize when you need to stop. It puts a solid plan into place that is easy to follow and gives you the chance to plan and prepare for the future. Money management and budgeting are the biggest tools you have to change your financial future.

It Improves Your Standard of Living

Having control over your finances also lets you decide how much you’ll get to spend in each facet of your life. So if you want to put a significant portion of your money toward leisure activities, you shouldn't feel bad about that as long as you are still saving and meeting your other needs. Money management is not about limiting the fun in your life; it's about opening up opportunities to have more fun and help you worry less about your future.

It Can Affect Your Mental and Physical Health

Our financial well-being has long been connected to our physical health, but the symptoms go far beyond just stress. More and more research between the two reveal that we get affected in more ways than one, some of which are serious enough to get us