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There are three essential elements to managing money successfully. They sound simple, even obvious. But the majority of Americans don’t do them. The result is high debt, high stress, loss of flexibility in life choices and future financial INSECURITY.
However, if YOU put these into practice on a regular basis, you will avoid most of the financial problems that Americans struggle with today.
The first – Don’t live beyond your means! If you don’t have the cash, and it is not a necessity, don’t buy it or do it. The only way to live beyond your means is to use a credit card, and there are numerous disadvantages to that. Get in the habit of saving for the extras, rather than the “buy now, pay later option.” Over 40% of families live off 110% of their income. Don’t you be one of them!
The second – “Pay yourself first!” In other words, in order to be financially secure, get in the habit of putting aside money out of each paycheck and saving it. If your income is limited now, just save $5.00 a week. Once you earn more, the “savings habit” will work to your benefit, as you set goals and increase your savings. The current savings rate hovers between 1% and 2%. This is not enough to cover financial emergencies or insure a secure retirement.
The third - Develop a plan for your money! Come up with a plan – a money management plan. Not planning will result in UNCONSCIOUS spending. And this is how individuals get into trouble with debt. Instead, CONSCIOUS SPENDING will insure you fulfill your most important hopes and dreams. A Spending/Savings Plan will insure a secure financial future. It will insure that your money goes where you REALLY want it to go.
This section is designed to help you to control the flow through the development of a plan for your money. It will bring you through the essential steps in planning your spending – like a road map, it will bring you to the destination you have chosen. Start with your DREAMS and end with a plan to make them come true.
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