Learning Effective Money Management
by:
Mika Hamilton
Increasing wealth and net worth is about more then just making good investments or even "getting lucky". The key to lasting wealth comes from good money management. Do you realize just how many people are millionaires? The numbers may surprise you. The person sitting next to you could very well be a millionaire. Your neighbor that lives across the street could also be a millionaire.
The most common misconception that most people have about the wealthy is that they always drive around in fast and fancy cars, take lavish vacations, and live on large estates. While that may be true of some people, but the majority of the wealthy live normal lives and go to normal jobs. The reason? They realize that uncontrolled spending can lead to uncontrollable credit and unfortunately as has been the trend, bankruptcy. There are several points that one could use to compare their wealth plan with their actions to see if they are truly heading in the right financial direction.
Do You Save? Sure everyone tries to save a little here and there, but to truly become a financial success a regular savings plan that is part of a well-balance budget. Saving money isn't always easy. The advice of a financial advisor or even the use of money management software can help you plot a financial route. Planning for emergencies, educations and even mundane expenses should be part of a budget.
Certainly there are people who have stumbled upon their fortunes either by inheriting it hitting it big in the stock markets. That is a very rare occurrence and those who frivolously invest in every scheme imaginable to strike it rich usually just end up the complete opposite. Again proper money management is key.
Planning to save means that you determine now where you want to be and then follow in a patter of saving and investing that makes it possible to meet that goal. Of course a balanced portfolio utilizes more then just a savings plan. Investing in mutual funds and stocks should really carry and equal share of the load. Good money management also means controlled spending. A perfect example is that of an NFL player.
It is hard to believe that people who make enough in a couple of years for most of us to retire on would have any kind of money problems, but year after year players get themselves into financial binds and end up in the red. The reason is poor spending habits. Spending money on anything from a sports car and matching house for mom to an expensive dog house, they forget how important it is to save thinking they will always have enough. That is almost never the case. For these stars they should be saving more then they are spending in a year to be prepared for premature retirement or other emergencies. Only by controlling spending habits and developing solid money management skills can a person, star or not, ensure that they will be financially secure for the future.
About the Author:
More Articles & Tutorials and a Free
Investing For Beginners E-Course at
http://www.Global-Investment-Institute.com
No. of Times this article has been viewed :
817
Date Published :
May 25 2007
Most Recently Published Money Management Articles as of
|
|
Mar 18 2010
How to Resolve Money Problems
by
BMA Editorial Team A
Why do many intelligent, talented people under-earn? What is the psychology behind why people short-change themselves, earn less than they are capable, and experience financial problems because their needs exceed their income?
|
Mar 15 2010
Money and Spirituality - Do They Mix?
by
BMA Editorial Team A
The hoary argument that you cannot have both - spirituality and abundance - continues to proliferate and entangle the minds and experience of many seekers.
|
Mar 14 2010
Your Money Thermostat- Is It Stuck?
by
BMA Editorial Team A
What's your "money thermostat" set to?
Interesting question, huh?
|
Mar 6 2010
Learning Effective Money Management
by
BMA Editorial Team A
Increasing wealth and net worth is about more then just making good investments or even "getting lucky". The key to lasting wealth comes from good money management.
|
Jan 21 2010
Essential Trading Money Management Strategies
by
BMA Editorial Team A
Like any leverage, do the basics, do the homework, prove yourself doing the stocks. They're the easiest. Do that for a period of time and then move on to something else. An understanding of trading money management should underpin all of this.
|
Jan 20 2010
Jobless No More: Make Easy Money on the Internet
by
BMA Editorial Team B .
There are different ways for you to learn and know how to make easy money on the internet. These often include companies that either have a physical branch with an online catalog while some can totally operate online.
|
Jan 14 2010
4 Money Rules to Live By
by
BMA Editorial Team A
These four rules work no matter where the economy is heading, what the stock market is doing and where interest rates stand. Time-tested, biblical principles work regardless of worldly circumstances.
|
Jan 4 2010
The Market Cycle Investment Management (MCIM) Program
by
Steve Selengut
Investing with a calendar year focus has no basis in the realities of finance, business, or economics... isn't it obvious that the Stock and Bond Markets are far more closely related to the Business Cycle than to the Earth's around the Sun?
|
Dec 19 2009
Family Money Management - Advice on Borrowing and Lending Within Families
by
BMA Editorial Team A
These 5 rules for family money management will help you to control your own money and reduce the opportunity for money to destroy your family relationships.
|
Dec 14 2009
Outsource Your Money Management and Personal Finance Tasks
by
BMA Editorial Team A
There you have it, tips to simplify and automate your finances so you can focus on leading and managing your money rather than handling it. Becoming a money leader and a money manager is vital to ensuring your long-term financial success.
|
Dec 3 2009
Why You Shouldn't Save When You Have Debt
by
BMA Editorial Team A
I know it can be hard. You just have to remember that any money you've 'saved' hasn't really been saved at all. It is money you should have been spending instead of making purchases with a credit card.
|
Dec 3 2009
Foreclosure Laws, Debt & Divorce: 3 Pieces of Critical Info for Dependent Spouses
by
BMA Editorial Team A
Money problems are the number one cause of discord in a marriage. And nowadays, certain factors have aligned that make these times a "perfect storm" for divorce. If you're a dependent spouse in a divorce, following are three things you need to know about debt, divorce and foreclosure laws.
|
Nov 18 2009
Tips on Selecting the Right Structured Settlement Company
by
BMA Editorial Team B .
Before we move on to the tips that will help you find the right structured settlement company for your needs, are you really sure what you've got on your hands is a structured settlement?
|
Nov 18 2009
How to Save Real Money When Shopping for a Used Car from a Private Seller
by
Bruce Hokin
Apart from your home, this can be one of the largest financial expenditures and therefore one of the most important to your financial well-being. If you can learn a few rules and remember some proven tips then this can be an enjoyable experience. Here's how.
|
Nov 18 2009
How to Save Real Money When Buying Nearly Anything at an Auction
by
Bruce Hokin
Auctions are a fun, yet sometimes stressful way to buy goods. It could be a car, it could be real estate, it could be antiques or items for the garden and around the home. You can pick up a bargain or get caught. Learning a few tricks can make this process a lot more enjoyable, saving you money too.
|
|
Search for ebooks on Management & Business