Money Management

 Everyone, at some point in our lives, has probably answered to some sort of manager who’s calling the shots. Without a good money manager little is accomplished. When the teacher leaves the classroom for a few minutes it doesn’t take long for their students to get out of hand. A frequently absent boss at work seldom has the same productivity from their team as one who is involved.

When problems arise, someone has to find and implement a solution. Money management can help us manage ourselves in numerous ways every day. But are we managing our finances? Or is the chain of command the other way around?

The majority of people go to a job every day, spend hours of their time performing a task for which they are payed a predetermined amount of money, and then go home to recuperate for the same process the next day. Why do we engage in such a ritual when there are often things we would rather be doing than our jobs? Simply put, we need the cash. From the bills that keep on coming to the unexpected snack at the supermarket, there never seems to be a shortage of opportunities for our money to disappear. By the time the next check arrives we are beginning to implement some sort of spending restrictions on ourselves due to a dramatically depleted bank account.

So how does a person get out of this mess? Become the manager of your money. Stop letting it manage you.

Look At It From A Corporate Perspective

Money is either a powerful solution or a powerful problem. What most people fail to recognize is that, in a large part, whether it is a problem or not is up to them. When a financial problem arises it should be dealt with similarly to an issue with an employee under your supervision. It deserves prompt attention, calm rationale, and an educated plan of action to remedy the problem.

Just in case management is not your area of expertise, lets compare it to a maintenance position. Small issues are not worth stressing over. But every issue, no matter how small, is worth fixing since it affects the overall performance of the equipment you are using. Efficiency is as important to managing money as it is to a machine. Keep receipts and records of what you make and what you spend, no matter how small, in order to develop an accurate measurement of that efficiency. That McDonalds visit may cost more than seven bucks in the long run if it puts you over your budget, so find a cheaper alternative and work it into the solution.

Make Some Time For Your Finances

I recomend that you review your finances at least on a weekly basis. By spending a few minutes every week to examine your expenditures, and modify them according to your needs for the next week, you can get on top of things financially faster than you may think. The records you keep will provide you with invaluable information on how to improve your money management style. As you fine tune your financial situation you will begin to feel less pressure to make it to pay day. In fact, you may even find, through some planning and effort, that you have money to spare. Take that money and hammer out some debt or save the cash somewhere where you won’t be tempted to spend it. Later you can revisit that money as your situation improves and, by utilizing many of the same management tactics you used to save the money in the first place, turn that savings into a source of residual incomethat will enable you to further improve your situation… and maybe eventually quit your day job altogether!

Money isn’t everything. Family, friends, peace of mind, and many other things will always supercede that elusive little green I.O.U. on the priority list of life. But with that in mind, scheduling time and learning to manage your money effectively will enable you to spend more time in the end with the things, and the people, that matter the most to you.

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