MONEY MANAGEMENT

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WHAT IS MONEY MANAGEMENT?

Money management is the process of knowing where you are spending your money today and having a well-thought-out plan in place for where you want it to go in the future.

MONEY MANAGEMENT

• Set goals• Get organized• Track spending• Build a budget• Save money

1. SET GOALS

• Take time to set goals so you can plan for the future

• Goals should be specific• Example: “I will save $50 a month for the next year.” If this goal is put into action you would have $600 in savings after 12 months

• Short term vs. Long term goals•Short-term goal: I will save $20 from my next paycheck• Long-term goal: I will save $5,000 in the next 5 years

GET ORGANIZED

Essential for effective money management

If your paperwork is organized and easily accessible, you’ll never have to waste time searching for important documents, wonder about account balances, or miss bill payment deadlines.

Find a safe place to keep all money related things so you always know where to find them.

Keep a calendar with due dates to be sure you are paying bills on time.

TRACK SPENDING

Spend less than you earn

Track your spending, see how much you are spending and what you are spending it on

Write it down

Keep receipts

After you track your spending, examine your findings.

Separate your needs from your wants

Use your tracking to make sensible and reasonable changes

BUILD A BUDGET

Providing a sum of money for a particular purpose from a budget.

https://www.youtube.com/watch?v=hLXk0Y7Y6UI

SAVING MONEY

Example: The laptop computer you want is $800, and you would like it in six months. You have not saved anything yet. To reach this goal, you will need to set aside $133 per month ($800/6 = $133).

Why?

Emergencies

Surprise expenses

Big purchases

Job security

Illness

The future

https://www.youtube.com/watch?v=oHWt_JXOhxE