Here is a small and extremely simple exercise to check your money management skills- just right now, write your total deposits, your debts, your net savings and your monthly expenses on a piece of paper. Many of you would not be able to write the figures correctly. Isn’t it really surprising? It could be because your money is not streamlined. So how would you make a judicious use when you don’t know your money?
Money management plays an important role in our financial lives. Those who have made very big money know the significance of money management. Unless you manage your money in a right fashion, you will not be able to make an optimum use of it. Consider this article as an assessment test that would enable you to judge your money management skills. See how many affirmatives you collect from the under mentioned questions:
- You track your income and expenses (formulate budget) with the help of a financial record-keeping system.
- You follow a set out household spending plan.
- You integrate your cheques and ATM withdrawals regularly.
- You know how to manage your money if you pay your bills on time.
- You review a copy of your credit report from the credit-reporting agencies.
- You pay off your full credit card balance every month.
- You educate yourself on every kind of financial issues.
- You have planned your retirement money and adjust the savings to ensure that you have employed the best chances of meeting your retirement savings goals.
- You don’t dip into your retirement savings to cover other expenses.
- You have at least one no-load mutual fund
- You have a satisfactory life insurance amount.
- You have placed all your money in different types of investment institutions and banks to minimize risks and increase returns.
Award yourself one point each on every ‘yes’. The more points you score, the more strong your money management skills. If you have more ‘no’ on your list, you are clearly loosing out on drafting a good money management process. Hope you get maximum ‘yes’. Happy Saving!