Successful Money Management

Successful Money Management techniques and principles are not complicated or hard to understand. You may have heard of them in other publications or other website. But I believe that in order for something to sink in you need to hear or see it several times, then you can act on it.

The following successful money management techniques are nothing new but they work. Use them and you will start to see some positive results when managing your finances.

Live below your means meaning dont spend more money than you make every month.
 
Live on 70% of your income. 10% goes to charity/donations/church. 10% goes to investment or emergency fund. 10% goes to paying down debt. When your debt is all paid off, you can use that extra 10% and apply it to investments.
 
Have a monthly budget
 
Dont charge large items on credit if you cant afford it
 
Save money first and wait for a sale to buy something you really want. Dont buy it then first minute its being released.
 
Look on ebay to see if there are any cheaper and new versions of what you want.
 
Have discussions of money in your family so everyone knows what the long term or medium term goals are. Explain to everyone how the money is divided up and why everyone needs to help save money.
 
Live frugally- there are tips on this subject on other pages within this website.
 
Make sound investments dont invest in things you dont know anything about. Dont take advice from your stockbroker. Dont take hot tips from friends or people you know that arent rich.
 
Always do research when it comes to financial institutions, money managers, investments, financial planning.
 
Every family should have a financial plan where the advisor doesnt try to sell you products and creates a plan for you with your best interest at heart.
 
Every family with kids and mortgage should have life insurance.