Is It So Important To Use Money Management Skills When You're Saving or Spending or Both?
I'm not sure what you're driving at, but it's always important to have good money management skills! Those who are careful with their money by planning purchases, comparing prices, as well as regular saving and investing, are much better prepared for the problems (and opportunities) life presents.
I agree with what you saying but some people get paid and don't know where their money went because they don't use the proper money management skills. In one hand out the other. Thank you for leaving your input.
Yes, that kind of person is a sad case indeed. No self control. People that waste most or all of their earnings must change if they ever want to live with more security and comfort.
At one time I only strived to pay debt. Now I balance outgoings with savings at the same time. That works better-save first and budget after.
Well congratulations on your progress, Kate. As Mr. Money Mustache says, work that frugality muscle! Over time saving and wise spending will become easier to accomplish. Eventually you will barely have to think about how you spend!
If you are saving and spending from your own money, then money management skills are very much needed. If you are spending from your Husband/ boy friend's money, then there is no need for such skills!
oh no C.V. Rajan-if you are spending someone else's money it is more important to budget and spend it wisely than if the money is your own. In my view it is best to save more than you spend on bills if you can at all
i think it is good to use the right management money skill to save money. I am not clever at this
The answer is obvious. Money management skills is important in all aspects of finances, whether through investments, savings or in a checking account. I am a big spendthrift so my husband and I early on agreed to have separate accounts because of his frugality and his earning a much higher income than I. It has worked out extremely well now that he is approaching retirement.
But one smart thing I did do while working at a law firm was invest all my raises in my 401K plan which amount was matched by the law firm. I had only worked there for four years but managed to amass about $22,000 because of my plan. Had I not invested my yearly raises, I would have just spent them on fripperies. I suggest that everyone, especially spendthrifts, follow this advice, especially when young as one has to get started on a retirement plan early on as it will be too late once one hits their 50s. Every raise you get, put it into your 401K plan. There will be no temptation to take it out due to the heavy tax penalties. Also, if you have a choice in stock investments, invest in safe mutual funds due to the instability of the economy.
This is probably the smartest advice I can offer because I have been a poor saver otherwise.
While Money Management requires skills, the most beneficial way to view Money Management is as a "way of life."
The reality is that those who achieve and maintain financial success, began "learning" at a young age. Obviously, these would be individuals fortunate enough to be born to parents/family who have mastered the integral skills of financial savvy and made it a focal point as part of your upbringing and daily life.
If you have any doubt of this, I suggest you take the time and energy to pay close attention to your circle of associates, listen and watch carefully and take note of their "money habits."
While saving and spending habits are both of utmost importance, there is much more involved. The best news is that it is simply not as difficult as most people have been led to believe. One thing stands out above all others and it is self-explanatory. "Discipline."
Should you ever encounter anyone who may suggest otherwise........know this: They were simply BORN into wealth that for some fortunate and magical way, will remain forever.
They are the extremely few and rare.
Money management is not such a great difficult task. It is always better to think about saving while spending. A simple awareness about your future needs may guide you towards good management. You should have a plan about your future aims or goals and a vision of your future life. Then you will recognise what are the requirements to achieve that vision of life. You will realise that, if I do like this I can reach that goal. If you are really wanting to achieve that goal or maintain that kind of life in future, then you will automatically try to be cautious in all your present spending habits to reach that goal.
Some times, spouses and partners may be careless or lavish in their habits which can also affect your life. So, you should sit with him or her and discuss your thoughts and plans with him/ her and convince them to cooperate with you.
Its always important. Most people don't realize how much things add up. A great example is just writing here on Hubpages, most people make less then $1 a day, and some days they can make 50-100 dollars in 1 go. But even if they are only pulling in 10-20 cents a day on average they still get a google adsense payment before they know it. I love looking at my connected account and seeing a payment even though some days I only get .20 cents! If everyone used that same theory in their daily lives they would have more money and be happier. Of course, the problem with this that most people can't do is they have to live with less or a lesser amount. Best example is buying a McDouble from McDonalds for 1.27 with tax and adding "extra cheese" for 30 cents more. Thats the most expensive slice of normal cheese you can buy on the planet. Example of how much that cheese actually costs:
US= .30 = Roughly 2 and a half minutes of minimum wage work (8/hr)
China Yuan= 1.87= Roughly 18 minutes of minimum wage work (6/hr)
Japan Yen = 35.86= Roughly 2.91 minutes of minimum wage work (764/hr)
Money management skills are like extra cheese. It doesnt matter in the moment your in, but it will matter if you look back on it.
A simple answer to a simple question.
When spending be sure to get the best value for your outlay.
When saving be sure gain the best interest / income for your savings
Discipline and risk management is most important in money management.
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