People use their intelligence to learn skills and acquire knowledge. Often the process of learning is dull. However, everyone likes the subject of money. People dream about it, spend it in reality and in imagination, earn it, and all too often watch it slip through their fingers like water. However, as you increase your financial IQ, you will have a better chance of controlling your money and your future.
There's a lot of help out there, from radio talk shows, investing advisers, online posts and blogs, how-to-get-rich books, and helpful friends and family. Some reliable sources are very old, like the Bible. Others may be hot off the press, promising a brand-new way to get more money, spend it more wisely, make it work for you, and make it last as long as you (and maybe your heirs) need it.
All of these go into an in-depth understanding of money management. First of all, people need to have money to manage, of course. Whether this comes from a paycheck, a government check, or even an allowance, there are good and poor ways to handle it. Centuries of money manipulation have given us some basic tools.
Almost everyone can work, and there is usually some sort of job out there. These days, income might be from employment, or it might be from government assistance. No matter where it comes from, good management can make it go farther. This is where a budget comes in.
Many people go through life without a clear idea of income and expenses. They have cash flow, they just don't take the time to understand it. This is a serious mistake which can cost thousands over the years. The very first thing is to list expenses that are recurring: rent or mortgage payments, utilities, alimony payments or child support, and such 'fixed' expenses.
Things not in these categories are areas in which you will have more discretion. Food is something you cannot do without, but you can buy wisely or foolishly. The same thing applies to clothing, recreational spending, and household supplies. Attention paid to detail can mean a bit of money left over after everything is taken care of.
Everyone should be able to save at least a part of every check. Having an emergency fund means that unexpected purchases - like a new tire for the car or a new blouse after one is ruined by spaghetti stains - won't have to be paid with - gasp - credit. Buying on credit is something most of us need to avoid like the plague, since it makes everything cost more in the end.
Budgeting and saving are at the most elementary level of financial matters. There is a lot more to learning about money. There are tax shelters, investments, and many more ways to create wealth. It's fortunate that the more you learn - always assuming you apply the knowledge - the more fun it gets. Setting goals is another way to foster self-discipline and track achievements; setting a goal, meeting it, and setting another higher one is one of life's quiet thrills. Eventually you will find that you're out of the 'investing for dummies' class and headed for a graduate degree in money management.
There's a lot of help out there, from radio talk shows, investing advisers, online posts and blogs, how-to-get-rich books, and helpful friends and family. Some reliable sources are very old, like the Bible. Others may be hot off the press, promising a brand-new way to get more money, spend it more wisely, make it work for you, and make it last as long as you (and maybe your heirs) need it.
All of these go into an in-depth understanding of money management. First of all, people need to have money to manage, of course. Whether this comes from a paycheck, a government check, or even an allowance, there are good and poor ways to handle it. Centuries of money manipulation have given us some basic tools.
Almost everyone can work, and there is usually some sort of job out there. These days, income might be from employment, or it might be from government assistance. No matter where it comes from, good management can make it go farther. This is where a budget comes in.
Many people go through life without a clear idea of income and expenses. They have cash flow, they just don't take the time to understand it. This is a serious mistake which can cost thousands over the years. The very first thing is to list expenses that are recurring: rent or mortgage payments, utilities, alimony payments or child support, and such 'fixed' expenses.
Things not in these categories are areas in which you will have more discretion. Food is something you cannot do without, but you can buy wisely or foolishly. The same thing applies to clothing, recreational spending, and household supplies. Attention paid to detail can mean a bit of money left over after everything is taken care of.
Everyone should be able to save at least a part of every check. Having an emergency fund means that unexpected purchases - like a new tire for the car or a new blouse after one is ruined by spaghetti stains - won't have to be paid with - gasp - credit. Buying on credit is something most of us need to avoid like the plague, since it makes everything cost more in the end.
Budgeting and saving are at the most elementary level of financial matters. There is a lot more to learning about money. There are tax shelters, investments, and many more ways to create wealth. It's fortunate that the more you learn - always assuming you apply the knowledge - the more fun it gets. Setting goals is another way to foster self-discipline and track achievements; setting a goal, meeting it, and setting another higher one is one of life's quiet thrills. Eventually you will find that you're out of the 'investing for dummies' class and headed for a graduate degree in money management.
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