Five Core Money Principles for Better Money Management


Your perspective about money speaks much of your capability to make the right decisions when it comes to money management. Many people find themselves in a financial mess, enormous debts and no retirement savings because they fail to live by the right principles when handling their finances.

To become better at personal money management, there are basic principles that you need to keep in mind, and they are the following:

Principle #1: Don’t Spend Beyond Your Means

This is the central idea in effective personal finance management—to spend less than what you earn, and to strive to earn more. Having the discipline to live below and within your means is crucial in budgeting, saving and investing. Make sure that you daily, weekly and monthly expenses do not go beyond what you paycheck allows, or you will find yourself in enormous debts and empty bank accounts when you need money the most.

Principle #2: Be Mindful of Your Expenses

Don’t let a single dollar out of your pocket without carefully considering whether or not you need to spend it. Cut off expenses where you can in all the areas of your life so you can make allowance for other needs, especially for your savings. Be critical in all your expenses. Here is a great FREE spending app available from Amazon for use on all Android devices that tracks your spending. It’s called Spending Tracker.

images (2)Principle #3: Eliminate Debts ASAP

Focus on eliminating your debts. Enormous debt not only cause stresses but it actually stops you from achieving the financial freedom you long for. They disrupts cash flow and their interests can accumulate overtime. So, strive to be debt-free!

Principle #4: Learn and Do Investment

Money-smart people know that they also need to make their money grow and not just keep them. Educate yourself about investment options out there. Choose low risk investments or reap higher rewards with higher risks. Whatever you choose, invest your money and let it grow. Read more on our review of Betterment.

Principle #5: Set Goals and Strive to Achieve Them Consistently

Make goals for yourself and stick with them. Create long- term, mid-term and short term goals and direct your every step towards achieving them. Having a set of goals will help you keep track in your effort towards better money management and financial stability. Once you reach goals, replace them with new ones. Don’t stop achieving!

Written by Jon the Saver

This post was written by yours truly, Jon Elder. My mission is to help you succeed in your personal finance life. Join me on the journey to financial freedom! You can subscribe through RSS FEED or EMAIL updates. You can also find me on TWITTER
and FACEBOOK
. Happy investing 🙂

Jon the Saver

This post was written by yours truly, Jon Elder. My mission is to help you succeed in your personal finance life. Join me on the journey to financial freedom! You can subscribe through RSS FEED or EMAIL updates. You can also find me on TWITTER and FACEBOOK . Happy investing 🙂

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