managing your money effectively
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Managing Your Money Effectively: Overview
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It’s a good time to summarize the most important points of
managing your money effectively!
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Budgeting
• Keep track of how much you have, earn, and spend• Remember fixed, variable, and non-essential
expenses• Earn more than you spend!
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Earn More Than You Spend
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Saving Money
• Minimize your spending• Use coupons and preferred customer programs• Search for used items instead of new ones
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The Power of Change
• Use a change jar• Roll your own change, saving the fee at the grocery
store machines• Some banks will transfer your change to your
savings account
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Time Is On Your Side
• The earlier you start saving, the better• The interest you earn accumulates over time
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Separation Can Relieve Anxiety
• Putting the money in a place where you won’t think about it is a great way to get into the saving habit.
• Out of sight, out of mind!
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Credit Cards are Risky Business
With great freedom, comes great responsibility!
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The Score Does Matter
• Things that can be affected by a low credit score are:o Ability to get a mortgageo Ability to rent an apartmento Your interest rate on loans and credit cardso Your credit limito Cell phone serviceo Finding a jobo Acquiring insurance
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Debt Management
• Pay off your credit cards in full every month, if possible• The best way to get out of debt is use the debt snow-ball. • Pay minimums on all debt and any extra money goes to
paying off the smallest debt on your list.
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Getting Out of Debt
Credit Cards
Bank Loans
Mortgage
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Paying off Your Credit Cards
The
SnowballEffect
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Beware of Identity Theft
• Shred all credit card bills before throwing them out• When shopping online make sure the site you use
is safe and reliable
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Credit Score
• Your credit score can be lowered by:o Applying for credit cardso Not paying your bills on timeo Having a high credit balanceo Missing paymentso Late payments
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Making Extra Money
• Utilize the internet• Sell things at flea markets, eBay, and Amazon• Provide virtual assistance online• Offer your services in your community
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Small Transactions Add Up
• Be wary of small credit card purchases• Set aside small amounts of money each week• As long as you save what you can, you’ll be on your
way to a financially comfortable life
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The Thing You ‘Need’ is Often...
…Just something you want!Be mindful of the difference
between a NEED and a WANT
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If you can put off the urge to buy stuff, you can discipline yourself to only buy things when you can afford them.
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In Closing
• Knowing how to handle your money will make it much easier and can lead to a more comfortable life!
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You can do it!
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