Money Management

Abstract

This paper explains how sound money management is an important aspect of day to day living. Being able to live within ones means and not getting into debt will help one be successful in life. Many Americans live outside of their means and accumulate thousands of dollars in debt. Practicing good money management will help one avoid stressful money issues such as dealing with collection agencies, auto repossession and bank ruptures. These issues can lead one to not being able to buy a car, owe a home and even get a job. Financial education can improve your life.

Money Management Paper

Everyone has heard the saying “Money doesn’t make the world go round.” That maybe true but it does make the world go round a lot easier for many people. Because of this, money management is an important factor in every Americans day to day life. If you spend too much, you can get yourself into debt. You have to set yourself up a budget and stick by it so you can stay within you means. Some essential ideas to keep in mind when trying to manage your money are: paying your bills first, setting a spending limit and saving for the future.

Paying your bills when you first receive your paycheck is a vital practice. In doing this you are able to get the money you owe paid out before you are able to spend it on other things. After you pay your monthly bills you know how much money you have left over to spend on purchases you may need and how much money you have left over to save. Keeping up on your monthly auto payments, housing payments and credit card payments keeps your credit score in good standing with the ability to grow (Credit Score). If your credit score is low it can hinder you from being able to purchase a car or house, obtain a bank account or even receive a particular job. Paying bills upfront goes a long way.

After the bills are taken care of, there is still money left over. The management of this money is also critical. Setting a spending limit for purchases...