Importance of Money Management

Unless you have a magic wand, managing messed up finances takes time, commitment and the courage to face unpleasant truths.

What we earn is not necessarily indicative of our financial health and stability. Most of us are content with taking home fat pay packages without paying much attention to the million little ways through which our incomes seep out.

A very real example is that of a young, professional couple that works hard, individually, and together to attain and maintain a certain level of lifestyle. Work takes up most of their week's time, and the remainder(weekends, time off at home) is spent on looking after kids, parents(in case it is not a nuclear family), family reunions, shopping for daily and periodic necessities, spending time on personal care(sleep, exercise, vacations) and numerous other commitments.

Relegated to one corner is the vital issue of money management. The couple can't find time to classify expenses and tells itself, often subconsciously, that as long as they earn well, house loans, car loans, children's education expenses, taxes, insurance premiums, medical expenses, electricity, phone and water bills and credit card bills will take care of themselves.

Do they? It often takes a rude awakening like a costly medical emergency or a hefty tax penalty to make us realize that money is inanimate. It needs constant supervision to serve us well. Neglect merely hides the issue until it quickly turns ugly.

But is it that unavoidable? Must you be helpless enough to watch your life's savings wash away in a single moment of reckoning?

No! Money just can't slip away if you don't let it.

So how do you do it? Money Management- it's an extremely simple step that calls for just 15 minutes of your daily time. All you do is keep a regular note of your daily/periodic expenses- where, why and how much. You could keep notes in a diary, or switch to the better alternative of using a money management software.

Either way, YOU REMAIN IN CONTROL OF YOUR FINANCES! Your income(salary, business profits, prizes, stocks and shares, auction incomes etc.) is accounted for, cent by cent, and so are your expenses(including un-foreseeable ones like emergency house renovations, medical emergencies, expenditure on damaged car restoration etc.) It's a peace of mind that is as rewarding as it is healthy.

Want to start? You have help right at your fingertips. The Internet is a storehouse of numerous money management tools, both online and desktop. Online tools are simpler as you do not need to download and install any software, and periodic updates are automatically added to your subscription free of cost.

Your account will invariably be protected and secure. Just log in everyday and feed in your(and your family's, friends' etc.) transactions for the day. Most of these online tools have features like categorized expenses listings to help you keep a tab on just what you spent your money on.

Also, being computerized, these tools offer you advantages like setting reminders and alerts, multi-currency support and printing your account details for ready reference, something your paper diary can never do.

There are numerous other innovative features and advantages that are aimed at inculcating the habit of taking one's finances seriously, so that you never run short of it when you need it most.

If you do not already practice money management, start right now! This is one step you will always look back on with pride.

« back