Essential Principles Of Good Money Management

A key focus of my blog is Financial Literacy/Money. Good money management isn’t taught in every home and thus there are many individuals who don’t anything about it. Some of the principles are actually pretty simple. The following contributed post is entitled, Essential Principles Of Good Money Management.

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Many of us struggle with decent money management throughout our lives, and it is something which can negatively affect almost every part of one’s life. If you feel that you could probably do with improving the way in which you approach your use of money, then there are many ways in which you can hope to do that. The truth is that there are a few essential principles to good money management which you might want to consider, and as long as you have done so you should find that you are going to be able to have a much better approach to money in no time.

Image – CCO Licence

Know Your Position & What You Are Owed

A lot of people struggle to actually get to grips with what they are owed and by whom, and for that reason they find themselves in a position of not really knowing what they should be doing. You need to pay close attention to the specifics of your own situation so that you can ensure you are going to get whatever you deserve. You might be a soldier returning to civilian life in need of making va disability claims, or you might be a carer who is eligible for a government grant. Whatever your situation, ensure that you are fully aware of it and what it entails, so that you can always claim what you are owed.

Put Aside Ten Percent

If you are keen to ensure that you are thinking about the future, a good rule of thumb is to always put aside ten percent of what you earn into savings. As long as you manage to do that, you should find that you are going to have a much stronger financial future, and that you will feel secure in your future in a much better way. Of course, that doesn’t mean putting aside only ten percent – if you are able to do more, then that is what you should do, the ten percent being only a minimum figure to aim for.

Image – CCO Licence

Pay Off Debt Before Saving

If you are saving money in a savings account and also paying off debt each month, then you are not really doing the most sensible thing you could be doing for your money overall. Chances are, you are paying more in interest on the debt than you are making in savings, so actually you’re not achieving anything at all. You will be better off over the year if you make a point of first paying off all of your debts before you start to save anything – apart from having a little emergency fund in your savings account just in case you should need it. Other than that, pay off your debt as a priority, and you will be better off in the long run by a long way.

As long as you take these on board, you should find that you are in a much better position with your money in no time.

Author: anwaryusef

Anwar Y. Dunbar is a Regulatory Scientist. Being a naturally curious person, he is also a student of all things. He earned his Ph.D. in Pharmacology from the University of Michigan and his Bachelor’s Degree in General Biology from Johnson C. Smith University (JCSU). Prior to starting the Big Words Blog Site, Anwar published and contributed to numerous research articles in competitive scientific journals reporting on his research from graduate school and postdoctoral years. After falling in love with writing, he contributed to the now defunct, and the Edvocate where he regularly wrote about: Education-related stories/topics, Science, Technology, Engineering and Mathematics (STEM), Financial Literacy; as well as conducted interviews with notable individuals such as actor and author Hill Harper. Having many influences, one of his most notable heroes is author, intellectual and speaker, Malcolm Gladwell, author of books including Outliers and David and Goliath. Anwar has his hands in many, many activities. In addition to writing, Anwar actively mentors youth, works to spread awareness of STEM careers, serves on the Board of Directors of the Friends of the David M. Brown Arlington Planetarium, serves as Treasurer for the JCSU Washington, DC Alumni Chapter, and is active in the Dave Ramsey Financial Peace Ministry at the Alfred Street Baptist Church. He also tutors in the subjects of biology, chemistry and physics. Along with his multi-talented older brother Amahl Dunbar (designer of the Big Words logos, inventor and a plethora of other things), Anwar is a “Fanboy” and really enjoys Science-Fiction and Superhero movies including but not restricted to Captain America Civil War, Batman vs. Superman: Dawn of Justice, and Prometheus. He is a proud native of Buffalo, NY.