Personal Money Management Tips

Thank you for clicking over to my blog post today in order to learn a few new personal money management tips. But I have a question, shouldn’t we have all learned personal money management tips in high school? Did you know that there are only four states that require high school students to take a personal finance course in order to graduate – Missouri, Virginia, Utah and Tennessee. As a nation we are in the financial mess we are today partically because of the financial iliteracy of kids coming out of high school. Here is a recent CNN story on teaching finances to school kids.

Ok, so what’s the one great financial tip that can help with your situation today?

Stop Overspending

Overspending happens anytime you spend more than your income can afford. Pulling out that debt card each day for gas, breakfast muffins, morning coffee, lunch, a great looking shirt on sale, without adding up the costs. Before you know it you’ve dug yourself in a hole.

Top 5 Reasons Most People Overspend

1. We want to feel good now. For most of us buying those little rewards in life can help us feel better in the short term, but can add up very quickly.

2. You do not have a budget. Setting up a budget lets you know what you can afford and what you can’t.

3. Keeping up with the Jonses. Always updating to the latest smartphone and hottest clothes can become an obsession that will lead to financial ruin. Only buy the things that are in your budget.

4. Addictive spending. Yes, people can become addicted to the emotional high of spending money.

5. Buying Stuff Instead of Assets. What do most people buy on payday? Stuff, and usually only because it’s on sale. What should you be buying on payday? Assets. Assets are things that gain in value or create income.

Creating Assets

One of the easiest ways to stop busting your budget and overspending is to buy assets that you can afford. Each and every payday pay yourself first, even if it’s only $20. Put it in a piggybank, setup direct deposit into your savings account, buy a 1 ounce silver bar, it doesn’t really matter as long as you get going today.

Consider starting Dave Ramsey’s Seven Baby Steps program if you need to get out of debt while saving for your future.

Personal Money Management Tips

I hope these personal money management tips were of some value to you. Please check out Annual Free Credit Report if you wish to learn more about the current state of your finances.

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