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Personal Money Management

When I was at my younger age I used to read stories in comics and one of my favorite is the story about the money tree.  How I wish that my family owned that money tree so that my parents will not get any personal loans to any lending company.  I really thought that the money tree exist until such time that I learned how money are created.  Money tree does not exist and only a creation of wild imagination of the writer.

It is true that money tree does not exist but it is also true that you can avoid asking for loan if you know how to manage your own money.  It is not how much you earn that matters but it is how much you spend every single day.  One of the best ways to manage your money is to evaluate how much money goes into your wallet and how much money goes out.  Once you know the two important things, you can do your own math and understand the reason why sometimes the money you earn is still not enough.  There are two things that you can actually do and that is either to increase your income or decrease your spending.  That is the best way to start.

Personal money management takes a lot of efforts and discipline and I think that is the area you need to work out especially if you spend so much.  Think about it...


Elvirah said...

These are little things people ignore, but they are very important. One must know how to manage their expenses, you dont need to be a spendthrift, but you can save a little for yourself, that can in turn save you from being in debts later.

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