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Live
deliberately by taking charge of your life and your money. We spend
80% of our waking hours around money. We are either earning money,
spending money, thinking about money, or worrying about money.
The way
you think about money can make a big difference in how well you can get your
money to work for you.
Couples
who talk about money are twice as likely to rate their relationships
as excellent but those who have financial problems are more likely to
divorce sooner than those who do not.
Here are
some of the basic money practices that are considered to be financially
responsible. Practicing these 11 simple responsible money management
practices can put you on the road to happiness and wealth.
| Live
within your means - even if that means changing the way you live |
| Pay
yourself first |
| Save 3 to
6 months of income for that inevitable rainy day |
| Start and
maintain an automatic payroll deduction plan for long-term savings |
| Write a
household budget and follow it |
| Track
your expenses - know what your actual expenses are |
| Be
careful with debt – particularly expensive credit card debt |
| Pay off
credit card debt as quickly as possible |
| Know and
manage your FICO (credit) score |
| Take
advantage of free credit reports every year |
| Solving
the gift dilemma forever with the
one
perfect gift |
Don’t let your spending fall too far outside
these ratios:
Formula from
TAKE HOME PAY
35% for Home/cost of living
15% for travel - includes car payment and gas
25% for other - includes clothing, extras, vacation
15% max on debt loans
10% for Savings - pay yourself first
It may be tempting to buy fun stuff whenever
you want it. It is , however, much better money management and better
for you in the long run if you buy the fun stuff only when you can afford
it.
If you are in a relationship be sure to talk
about money with your significant other and make decisions together. |
