People use their intelligence to learn skills and acquire knowledge. Often the process of learning is dull. However, everyone likes the subject of money. People dream about it, spend it in reality and in imagination, earn it, and all too often watch it slip through their fingers like water. However, as you increase your financial IQ, you will have a better chance of controlling your money and your future.
How-to-get-rich books have been around forever. There seems to be a new one coming out every day. Financial advisers compete for the privilege of guiding your investments. Radio talk show hosts offer free advice to those who phone in. People counsel you to get out of debt, show you how to make pennies go farther, teach you how to make money in the stock market, and show you how to avoid paying taxes.
The first step is, of course, to have some money to manage. People who live paycheck to paycheck, spending their income as fast as they get it, are not in a management position. There are some basic tools to help with this situation, as well as tried and true advice.
Almost everyone can work, and there is usually some sort of job out there. These days, income might be from employment, or it might be from government assistance. No matter where it comes from, good management can make it go farther. This is where a budget comes in.
It's surprising how many people have no idea where their money goes. They get it at set intervals, and it seems to vanish into thin air. Most people can detail fixed expenses like rent or mortgage payments, utility bills, and child support. They may not know the total of such recurring payments, however, or know what percentage each category consumes. They also may not know if their expenses are reasonable - in keeping with conventional wisdom - or way out of line.
After fixed expenses come ones over which you have some control. Food is always a necessity, but you can decide how much to spend and cut corners here by savvy shopping. Clothing, gas for the car, and recreation are other areas where restraint may produce a little surplus. You may think this is impossible - but try it and see.
Everyone should be able to save at least a part of every check. Having an emergency fund means that unexpected purchases - like a new tire for the car or a new blouse after one is ruined by spaghetti stains - won't have to be paid with - gasp - credit. Buying on credit is something most of us need to avoid like the plague, since it makes everything cost more in the end.
Budgeting and saving are the foundation for money management. Plan and act proactively rather than reacting to each new impulse or money crisis. Once the foundation is laid, things like investing follow. Learning to make money work for you rather than for someone else - like a creditor - is key to success. Proceeding step by step to sensible goals is the way to financial wisdom.
How-to-get-rich books have been around forever. There seems to be a new one coming out every day. Financial advisers compete for the privilege of guiding your investments. Radio talk show hosts offer free advice to those who phone in. People counsel you to get out of debt, show you how to make pennies go farther, teach you how to make money in the stock market, and show you how to avoid paying taxes.
The first step is, of course, to have some money to manage. People who live paycheck to paycheck, spending their income as fast as they get it, are not in a management position. There are some basic tools to help with this situation, as well as tried and true advice.
Almost everyone can work, and there is usually some sort of job out there. These days, income might be from employment, or it might be from government assistance. No matter where it comes from, good management can make it go farther. This is where a budget comes in.
It's surprising how many people have no idea where their money goes. They get it at set intervals, and it seems to vanish into thin air. Most people can detail fixed expenses like rent or mortgage payments, utility bills, and child support. They may not know the total of such recurring payments, however, or know what percentage each category consumes. They also may not know if their expenses are reasonable - in keeping with conventional wisdom - or way out of line.
After fixed expenses come ones over which you have some control. Food is always a necessity, but you can decide how much to spend and cut corners here by savvy shopping. Clothing, gas for the car, and recreation are other areas where restraint may produce a little surplus. You may think this is impossible - but try it and see.
Everyone should be able to save at least a part of every check. Having an emergency fund means that unexpected purchases - like a new tire for the car or a new blouse after one is ruined by spaghetti stains - won't have to be paid with - gasp - credit. Buying on credit is something most of us need to avoid like the plague, since it makes everything cost more in the end.
Budgeting and saving are the foundation for money management. Plan and act proactively rather than reacting to each new impulse or money crisis. Once the foundation is laid, things like investing follow. Learning to make money work for you rather than for someone else - like a creditor - is key to success. Proceeding step by step to sensible goals is the way to financial wisdom.