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Keys to Wise Money Management

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I'm still reading articles on Money Management, and as a good start for today, I have found some keys to be wise on money management. These could help us to control our finances and learn how to budget.


1. Set a Proper Goal

Set a practical goal to be sure that money being managed is in clear sight. Always start with small with objectives like paying off a credit card within a specified number of months or saving by the end of the year. Your money management goal should be projected towards a comfortable retirement.

--Setting up a goal is really really important to be able to get ourselves prepared and motivated. This is a very important part for me,too.


2. Take a Stock of Your Money

Keep a track on the stock of your money to know how much means you have actually have. Include all the cash in your pocket or purse, piggy bank cash, bank balances, available credit from credit cards etc. count down your assets also as they a type of your money. Short term assets can be turned into cash whereas Long-term assets would enable you to save money and increase your wealth.

--Yes! I think this could also be a part and a real key to money management! Every single bit could be a help! You should also know every single detail of how much money you have.


3. Track Your Income and Spending

By keeping a track on your income and expenses you will know where your money goes and it will let you to be prepared to set up a realistic budget for future spending. By knowing how much you have to spend and spending within limits or within that is allotted puts your finances under your control.

After you are known about the whole money you have and what income you can expect to get, take some time to find out where your money goes. Make it a practice to note down your spendings for each month and every month.

--You should have to prepare a journal notebook and record where your money goes. Lol. This could also work!


4. Record Keeping

Keep a record of everything which includes the cash you spent, your bill payments, check, debit, and credit card expenditure, how much amount you paid and where, date of purchase.

--like what I have said, you should provide a notebook for yourself to record your expenses and earnings.



**Following those simple steps could help you on Money Management


Reference (for the Numbered items): http://www.articlesbase.com/personal-finance-articles/some-keys-to-wise-money-management-1946278.html

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Keeping honest and detailed records is crucial. As humans we are very good at rationalizing even the most bizarre and idiotic situations. Told in the book Richest Man in Babylon, he who saves 10% of all he earns and learns to invest that money will become rich. It's as simple as that, live within your means, control your expenses and save 10% of all that you earn, aside from life getting in the way.

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Here are a few keys/tips to manage money in the business:

1)  Maintain Some Cash Reserve

2)  Reduce Receivable Cycles

3)  Extend Payable Cycles

4)  Pay Bills on Time

5)  Boost Sales without Offering Discounts

6)  Ask for Partial Payment or Initial Deposit

7)  Avail Business Loans

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First, we need diligence to successfully implement any financial plan. In the example above, those with livestock are advised to carefully monitor the state and condition of their animals. If an animal becomes ill, it needs special care. Insufficient food or water for livestock requires immediate attention. A farmer with herds must look after his animals if they are to survive and the household is to prosper.

How does this apply to those of us who aren’t farmers or ranchers? The fundamental lesson is that we cannot expect financial success by simply devising a plan and then blissfully ignoring the factors that affect it. Instead, we must know where, how and why we spend our money and what is happening with our assets. If we ignore this principle of diligently monitoring our finances, we will find ourselves making poor decisions and spending money we don’t have.

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