How to Develop Money Management Skills?

Claire Emma  2019-09-12 18:16:30

Establishing money management skills is a necessary undertaking, whether you are single or married with children. The sooner you learn how this is done, the sooner the skill becomes second nature. In fact, the sooner successful management skills are developed, the less likely you will have to backtrack and fix the financial burdens incurred during any prior bad management. Learning how to develop money management skills can be as simple as developing discipline and following some necessary steps. Its success is dependent on your desire to be financially responsible.

  1. 1Share the burden if you are married. Even if you have been assigned the responsibility of paying bills, include your spouse in the process. For example, discuss all purchases with each other and always establish a budget that you agree on. By doing this, your spouse will be respectful towards the money management decisions you have established and will make sure to abide by them. The goal is to have both you and your partner working together within the boundaries of whatever budgetary requirements you have established together. Additionally, you won't feel alone mulling over the finances.
    • 2Remain transparent when developing financial management skills. This can be as simple as having an open book policy with your spouse so that he or she has access to bank accounts and any billing books you have established. Of course, only one person should actually pay the bills and work the books, but having good transparency helps avoid any feelings of resentment by your spouse.
      • 3Establish a budget when managing your finances. This is a very necessary step and a helpful tool for any person, family, and business. A budget reigns your spending in, and it ensures that you are not spending recklessly. Everything should be budgeted, including your mortgage, loans, utilities, and groceries.
        • 4Assign all your finances and don't leave a penny unassigned. Monies that do not have a goal will be vulnerable to reckless spending and waste, even if this means including a dining fund so that you can have dinners out. By doing this, you are controlling every penny. You should always have a savings account, and then you can add a vacation fund, and emergency fund. You can include a car fund that you put money into to pay for registrations and oil changes, and so on. The goal is to take your income and divide what you have into those funds as soon as possible. The amounts that each fund gets are up to you and your financial responsibilities.
          • 5Include an allowance for you and your spouse. Allowances are not just for kids. You and your spouse deserve to make personal purchases that are not dictated, so assign a weekly allowance that fits your budget. It can be as little as $5.00 a week and you and your spouse can spend on what you want. This does not include needs, such as gas, work clothes and shoes, but it would include video games, fancy purses, and anything else that is not considered a need.
            • 6Understand how credit cards work and how they can be beneficial when managing your income successfully. Credit cards don't have to drive you into debt. They can be useful if used to make monthly purchases, including groceries, gas, and so on, and then paying them off at the end of the month to avoid interest and finance fees. Building points for money back rewards is also a good incentive. Just remember to make sure monthly credit card purchases are within the monthly budget you have established and that you can pay the whole amount off at the end of the month and in cash. If you cannot do this, then do not get a credit card.