Learn the Fundamentals of Money Management

  • April 2014
  • Posted By Ninoslav
  • 0 Comments

Simply put, money management helps you figure out exactly how much cash and assets you have and how do you envision your financial future. Planning is central to handling your finances well and wealth will only grow if you cultivate a disciplined approach.

Step1: Set your goals
Your goals should be categorized into short term goals and long term goals. Short terms goal can include immediately achievable objectives like “want to learn about Moving Average and RSI indicators in the next 1 month”. Your long term goals can sound like “”want to save one million dollars by retirement”. Make a chart that lists all your goals and reward yourself when you achieve one.

Step 2: organize your financials
Your home should have a separate space where you conduct all your financial dealings ensure that you keep all forms, cherub books and bank statements in one cabinet with different shelves. Invest some money in purchasing a fireproof safe and a paper shredder. Get the proper infrastructure for efficient money management. Ideally, reduce consumption and use of paper in your financial dealings.

Step 3: keep track of expenditure
Are you spending out of your budget? There is no way to know unless you actually track your purchases by writing everything down and separating it into different categories. You can use convenient applications like the Fritter Finder or the Tracking work papers to organize your expense sheets. Using useful budgeting software is also a great tip.

Step 4: Budget and then implement
Plan the way you want to utilize your money. Your budget shouldn’t be an oppressive tool but it should be a guiding light. The ground rule is “never let expenses increase more than income”. Money management must be strictly followed even if you gain unexpected amount of money this month by trading in the stock market using RSI and MA indicators.

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