Ten Rules for Successful Money Management
Never forget that the most important factor in wise money management is not how much money you make, it’s how you use your money. Here are ten rules that can help almost anyone achieve financial success.
1. Arrange a money management system that works for your family. It is vital that everyone in the family uses the same money management system.
2. Create a spending plan that is suited to your individual needs and income level. Everyone has different income and expenditures, and having a plan is vital to successful money management.
3. Decide on long-term and short-term goals that work for your family. Every family has different priorities. College is a big priority for many families, while others believe that taking a vacation each year is important.
4. Plan ahead for each year and make changes only when necessary. Many expenses are monthly and must be estimated, but some expenses such as real estate taxes and car insurance are often paid just twice per year. Dividing these annual payments into a monthly amount can make it easier to save.
5. Include all of your expenses and your entire income. Most people have an idea of how much their regular bills are, but they may forget to budget money for necessary expenses such as gas and clothing.
6. Make every member of the family aware of your financial plan. Saving money can be challenging, but having each member of the family aware of the financial plan can create a sense of unity.
7. Pay yourself first, and strive to save at least 10 percent of your income. There will always be unexpected expenses such as car repairs, that are difficult to predict. Having money in savings allows unexpected expenses to be paid without causing excessive stress.
8. Stick to the plan you create as much as possible, because the plan won’t work unless you actually follow it.
9. Review your plan about once per month because income and expenses are always subject to change.
10. Hold family meetings either monthly or quarterly to review your financial progress together. Reviewing the budget together allows each member of the family to share ideas about the budget and any concerns they may have.