Money management principles

Money Management Principles

Mon, Jun 29, 2009

Here are seven principles or guidelines to consider when it comes to managing your finances wisely and solving money problems. Some of these have surfaced from my budget coaching experience and others from my own quest to live financially free.

Manage your finances wisely

1. The Bible is the best resource for guidance in managing your finances

There are over 2200 scriptures about money, debt, saving and more. If you get the Biblical financial principle of stewardship and follow it, you’re on the road to financial freedom.

2. There is no try in managing your personal finances

You must do it. To many times I hear people say they will try to spend less or not use a credit card. Unfortunately, there is often never any weight behind those words. Tell yourself you will learn to manage your finances, control spending and get out of debt. Don’t let there be another option.

3. There are timeless financial steps that can be applied to your situation today

At the end of the day, it all comes down to one simple formula I always here Dave Ramsey talking about. Inflow must equal outflow. If you’re spending more, you’re getting yourself into debt. Create a budget and manage to your plan.

4. It’s important to keep it simple and find the tools that work best for you

Some people like pencil and paper and some people like software. Also, if you try to over manage your finances, for example, 50 subcategories in your budget, you’ll almost certainly not find the time to keep up with it.

5. You can’t hit the easy button to put your finances in order

Sorry, no one said it was going to be easy. As in most cases, you can’t change things over night. It requires work, commitment, intensity and perseverance to turn your situation around.

6. Change starts with you. No one else can do it

You have to decide when you’re going to get out of debt and start managing your money wisely. Don’t think you have a problem with money or are doing just fine? Consider looking at Dave Ramsey’s Baby Steps to see where you are and if you’re moving forward.

7. Collaborative networks of people accelerate knowledge transfer and the ability to replicate best practices

Through the internet, blogs, forums and more, you have a real opportunity to learn from others who are on the road to financial freedom. Take advantage of it. Talk to them online and read what they are doing to mange their money wisely and live debt free.

Can you think of other guidelines? I would enjoy hearing from you.

Tags: Baby Steps, Live Debt Free, Money Management Principles, Stewardship