6 Areas To Be A Better Money Manager This New Year

Photo by 401(k) 2013

Photo by 401(k) 2013

It’s A Great Time To Make Some Needed Changes

We’re at the beginning of a new year, and it’s a great time to make some needed changes in our lives. Personal finance is always one of those areas that needs regular attention and maintenance.

With a few tweaks, a few small occasional changes from time to time, we can all be better managers with the finances and resources God has blessed us with.

Here are six areas in which we can be better money managers this new year.

6 Areas To Be A Better Money Manager

  1. Always be working on two budget spreadsheets each month. Now, I know what you’re thinking. You’re probably having enough trouble just producing one cash flow spending plan a month. I’m always tweaking my current month’s budget based on any unusual changes in income or outgo. Plus, I’m usually doing some initial financial planning for the month that’s about to follow.
  2. Give at least 10% of your money away. Related to the first point, be sure to plan to give at least 10% of your money away. The tithe (10%) has always been a useful giving tool for the Jews as well as the Christian Church. So, if you’re Jewish, then you can give your tithe to your local synagogue. If you’re Christian, then you can give back to your local church. If you’re not a believer, though, then I would encourage you to give back to a charity or cause you believe in. The Law of the Harvest works whether you are a believer or not.
  3. Avoid debt at all costs. One of the ways rich people get rich is by avoiding debt like the plague. If you currently have some debt, then do rich people stuff this year and get your family out of debt as fast as possible.
  4. Be sure you have the proper insurances in place in order to protect your family. Did you know that the #1 cause for personal bankruptcies in the United States is due to medical expenses? The role of good insurance is to protect your family’s assets from a major financial life event, such as medical emergency, automobile accident, death, house fire, and so on. Make sure your “financial house” is in good order with quality insurance in all areas. You don’t want to become part of these statistics.
  5. Focus on both production and wise management. The people who make money and have money stashed away for a rainy day are focused on two main aspects of personal finance. The first is production. They understand the importance of having a number of personal income streams. They have 2-3 sources of financial income, which could include a full-time job or business, a part-time job, a side business, passive income streams, and so on. Second, wealthy people also do an excellent job of wisely managing all of their streams of income. They leave nothing to chance.
  6. Don’t leave “money on the table” that you can put to good use. My wife is really good at this. Here’s what I mean. Be sure to get the very best price on every good or service that you purchase. If there’s a rebate involved, then make sure you mail those in so you can get your money. If an item you just purchased goes on sale suddenly, then go back to the store and get a price adjustment. Be a firm negotiator in all your spending.

What Areas Do You Need To Focus On?

So, how are you doing in these six areas? Are you doing a good job in a few of these, but not so hot in some of the others? Are there some other important financial areas that I may have missed in this post that you are planning to improve upon this year?

Let’s all avoid any personal “financial cliffs” in this new year. Focusing time and energy in these six key areas will be a great way to do so.

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