2 answers
1
Question
Asked
199 views
What do I need to do properly when it comes to handling money?
Such as savings, spending it properly, etc.
Login to comment
2 answers
Updated
Daniel’s Answer
Hi Krystal!
The very first thing I would do is make yourself a monthly budget. There are many good apps/online tools you can find online. Many online tools can help you categorize certain expenses and they usually have graphics that can help you visualize your progress. You can also do it the old fashioned way on Excel.
After you set up a budget the next best thing you can do is sleep on it and really ask yourself if you need the item. I would encourage you to really think through what you will use the item for and for how long. Also, think about the big items in life you need to save for such as a house, possibly kids, retirement, etc. You are never to young to start saving for these big ticket purchases in life.
The last thing I would do is don't compare yourself to others. One of the most dangerous things is comparing yourself to people and thinking if they can have it so should I. Don't fall for that trap of "keeping up with the joneses" because comparing yourself to people and their things is not a good idea. It will only lead to misery and feeling like you are failure.
Hope some of the above provides insight.
The very first thing I would do is make yourself a monthly budget. There are many good apps/online tools you can find online. Many online tools can help you categorize certain expenses and they usually have graphics that can help you visualize your progress. You can also do it the old fashioned way on Excel.
After you set up a budget the next best thing you can do is sleep on it and really ask yourself if you need the item. I would encourage you to really think through what you will use the item for and for how long. Also, think about the big items in life you need to save for such as a house, possibly kids, retirement, etc. You are never to young to start saving for these big ticket purchases in life.
The last thing I would do is don't compare yourself to others. One of the most dangerous things is comparing yourself to people and thinking if they can have it so should I. Don't fall for that trap of "keeping up with the joneses" because comparing yourself to people and their things is not a good idea. It will only lead to misery and feeling like you are failure.
Hope some of the above provides insight.
Tammy Laframboise
Present pension and financial planning information to members of a pension
41
Answers
Updated
Tammy’s Answer
Be the boss of your money.
That means learning about managing your money. That means knowing all the details of both your income and your outflows.
* How much do you make?
* Is your paycheck deposited directly into a financial institution, what kind of account, what are the features of the account, e.g. interest earned, when paid, restrictions on withdrawals, etc.
* What deductions are taken from your pay before you even receive the paycheck? What are they for and how do the deductions benefit you?
When it comes to spending or outflows it is essential to know your values and goals? This is big because it will be reflected in how you spend your disposable income, i.e. the money from your paycheck after deductions. Sometimes we spend money on things that are necessary but we don't consider fun or like we have made the decision to spend this money. However, the rent we pay is to provide us with a comfortable and/or affordable roof over our heads. The insurance we pay is to give us peace of mind in the event of an accident or unexpected event. The money put aside to cover contingencies, e.g. the car breaking down, gives us comfort in knowing that we can weather difficult and unforeseen events. Even the small money like the few dollars we spent on coffee and a donut has a purpose. Maybe you were bored or hungry or it was a chance to spend time with a friend. If you find that sometimes you spend money and you don't like that you spent it, you have an opportunity to consider what need it was fulfilling and if you will choose to spend differently next time because...you are the boss!
Keeping track of inflows and outflows is an important element of managing your money. You can't be the boss if you don't know what is happening. This is a habit that you can develop regardless of your income level and will benefit you throughout your lifetime.
Getting help from others is another great tactic to learn to become an effective money managers. Ask questions like; What was your biggest money mistake? What is one of your best money habits? When did you start doing your own tax return and how did you learn? There are great books on the library that can help you to know what you need to know.
Best of luck on your money management journey!
That means learning about managing your money. That means knowing all the details of both your income and your outflows.
* How much do you make?
* Is your paycheck deposited directly into a financial institution, what kind of account, what are the features of the account, e.g. interest earned, when paid, restrictions on withdrawals, etc.
* What deductions are taken from your pay before you even receive the paycheck? What are they for and how do the deductions benefit you?
When it comes to spending or outflows it is essential to know your values and goals? This is big because it will be reflected in how you spend your disposable income, i.e. the money from your paycheck after deductions. Sometimes we spend money on things that are necessary but we don't consider fun or like we have made the decision to spend this money. However, the rent we pay is to provide us with a comfortable and/or affordable roof over our heads. The insurance we pay is to give us peace of mind in the event of an accident or unexpected event. The money put aside to cover contingencies, e.g. the car breaking down, gives us comfort in knowing that we can weather difficult and unforeseen events. Even the small money like the few dollars we spent on coffee and a donut has a purpose. Maybe you were bored or hungry or it was a chance to spend time with a friend. If you find that sometimes you spend money and you don't like that you spent it, you have an opportunity to consider what need it was fulfilling and if you will choose to spend differently next time because...you are the boss!
Keeping track of inflows and outflows is an important element of managing your money. You can't be the boss if you don't know what is happening. This is a habit that you can develop regardless of your income level and will benefit you throughout your lifetime.
Getting help from others is another great tactic to learn to become an effective money managers. Ask questions like; What was your biggest money mistake? What is one of your best money habits? When did you start doing your own tax return and how did you learn? There are great books on the library that can help you to know what you need to know.
Best of luck on your money management journey!