The old saying “Put money away for the rainy day” is true. Although you earn no interest while storing your money in a piggy bank, safe, jar or under a mattress, etc., you still accumulate cash for paying bills or doing something for yourself. Accumulating cash is a good way to manage money because it builds collateral.
I know that most people see budgeting as taking something away to live within their means; people should see budgets as the vehicle that gets them to their means. When you calculate budgets, have a goal in mind, such as paying bills, college, remodeling your home, purchasing a home, purchasing a car, savings, vacation, traveling, and treating yourself–this makes budgeting more natural and pleasant to create. Budgets are an excellent way to manage money because they are the guiding light to your goals.
Accumulating cash in a bank gives you one guarantee: FDIC (federal deposit insurance corporation). You feel that your money is safe in an FDIC bank because these banks assure customers that their money (up to $250,000) can be withdrawn when something negative happens to the bank. Even though banks give, on average, $0.06 interest, they still are an excellent way to manage money because banks can offer ways to grow and gain wealth.
Finally, say NO to temptation. Don’t buy things that you don’t need or are impractical. It is easy to spend your money on immediate gratification because you worked for it; however, remember your goals. Saying NO to some things is an excellent way to manage money because your cash can accumulate, financial goals can be met, and wealth can be acquired.
Tips for ‘Bill Pay’ money management:
-
-
-
-
- Pay the monthly amount due weekly.
- For instance, a $250 monthly payment is paid every four weeks; therefore, the amount is $ 62.50/wk.
- Create ‘Autopay’ accounts to avoid late fees.
-
-
-
-
-
-
-
- The balance owed should be rounded-up for easy calculation and quicker deduction of the amount owed.
-
-
-
- To pay down large balances, transfer to promotional cards with 0% APR. Pay off the balance within the time frame of the offer.
- Suggestion: The monthly payment should not exceed regular payment.
