Who manages your personal finances? Seems like a silly question, but if you ask many people they will tell you, “no one, my money doesn’t need managing, I just pay my bills and spend what I can” I hear this quite often with those who make a lot of money and those who make a little money. They are clueless about the fine tuning of their budget and creating finances that will create money that lasts.
When I give meeting attendees just a few of my suggestions they are surprised at the information that will change their lives, and the information they did not have to create finances they needed. The following are three things you can do to improve your personal finances. This is part 2 in a four-part series I am writing this month on personal finance.
MANAGE YOUR OWN FINANCES
Managing your own personal finances is crucial. Why does that sound strange – most would say, of course, I manage my own finances? But, for many, that is not true. Wives let husbands manage all the family finances, and there are husbands that let wives handle all the family finances. Then, there are elderly people who allow adult children to manage their finances. There are even people who allow complete and total strangers to manage their finances since they are convinced they are not capable.
You can and you should manage your own finances – get personal with your finances and stay that way. Married couples should manage their finances together, and everyone else I mention should stay close and manage their own finances – this is the core of personal finance. If you don’t feel competent enough to manage your own finances, you should think seriously about finding the time or finding help learning how.
YOU CAN GET YOURSELF OUT OF DEBT
I have heard of folks turning their money over to a small business that manages their money to get them out of debt. You can get yourself out of debt if you got yourself into debt. It is ok to use someone to help you get out of debt but work with that person hands on. Don’t turn your money over to someone else to do it for you.
Not only should you not turn it over, but it is important that you stay close to the process so you can understand how to get out of debt and how to stay out of debt. Once you have an awareness that you are at a level of debt you should not be in, start to think of what got you there and create ways to stay clear of returning to debt.
UNDERSTAND YOUR FINANCIAL HABITS
Managing your finances and getting out of debt begins with an understanding of your personal finance habits. Some habits are so automatic, it is as if some are spending money with their eyes closed. They fail to understand the seriousness of their blind spending and the future implications. You know you are engaged in blind spending when you ask yourself at the end of the month, where did my money go?
Make sure you watch my latest video here.