How to Manage Money Essay

620 WordsApr 8, 20143 Pages
How to Manage Money Money is an important factor in life that helps us live our lives the way we want. It is needed to buy the necessities and desires we have to maintain our well-being. But managing your money is whole other subject. There are ways to assure that your money is being spent and saved the right way. These are the steps to keep your money the way you would like it to according to your lifestyle. Getting your bills paid first, setting a budget and sticking to it, and keeping track of what you are spending. The first step to managing money is getting your bills paid first. Getting your bills paid first helps you have everything up to date and in order without worrying about anything getting cut off or taken. Make a list of all the things that you have to pay and subtract it from the money you get paid from your employer or business. This is the responsible way to make sure that you are not spending too much extra money on the things you want. If you don’t follow this advice you may be in jeopardy of losing the things you love and need to live such as your house, car, appliances, etc. The next step is setting a budget and sticking to it. Setting a budget for yourself and following it, helps to assure that you are not spending any “just in case” money. “Just in case” money is the money you use if something may come up that you may have forgot about or something happens in your life that requires a payment such as hospital visits, car repairs, or something breaks in your household. Setting a budget also helps you to gain self-control of the pressure of shopping for things you don’t need. It is okay to treat yourself sometimes but don’t try to live beyond your means. Trying to live beyond your means could cause credit problems in the future due to not being able to pay for the things that you have purchased. The last step is keeping track of what has been

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