Personal Budgeting: An Essay On Money Management

1733 Words4 Pages

Money Management
Do you ever wonder where all your money goes at the end of the month? You’re looking at your bank account perplexed not having a single clue of what happened. Then you go through your account history to see how much you’ve spent during the month. And that’s the moment when you realize something has to be done in managing your money daily, weekly and monthly. Many people go through this every single day and have no idea what to do. Money management is the key to having control by keeping track of one’s daily and monthly spending throughout the year. There are many ways a person can manage their money such as by budgeting, saving, and using credit cards wisely.
Budgeting
What exactly is budgeting? A budget is a plan that helps
It’s not easy starting, and actually following a budgeting plan but there are eight steps that will help you get started. Following these steps will help you in setting up your very own, personalized budget: “Step 1. Make a list of your values, Step 2. Set your goals, Step 3. Determine your income, Step 4. Determine your expenses, Step 5. Create your budget, Step 6. Pay yourself first!, Step 7. Be careful with credit cards, and lastly Step 8. Check back periodically” (1). It’s important to list all the values
Don’t think about your goals mentally, instead write them down on a piece of paper (visuals are better). Also take note of where do you see yourself in three months, one year, and three years from now financially. Figure out what your available income is each month such as the amount you take-home; don’t include any overtime pay. Determine all your expenses which are fixed expenses, variable expenses, taxes/insurance, credit card statements, and any receipts that show where your money is actually going. There’s many apps you can use to manage your money like You Need A Budget, Mint, Level Money, and Digit.Co just to name a few (2). Digit.Co is a free app that links your “Digit savings account to your checking account, and every few days, it transfers a small amount of money from checking to savings” (2). This app “learns” ones spending habits and helps you from overdrawing your account. Just in case because you never know when that day can come; it’s better to be safe than sorry. Level Money is also another great free app that helps you keep track of weekly, monthly, and daily spending. Every app will have its perks and cons

More about Personal Budgeting: An Essay On Money Management

Open Document