Some people have indeed developed a fondness for money and
have devoted themselves to the accumulation of riches. Some have become slaves
of money and have reaped tragic consequences.
When managed
properly, however, money can be a useful tool. You can use “money to solve a
lot of problems.”
The following five steps
are commonly recommended by financial advisers,
Save. Most financial planners encourage saving. Make
saving a priority. As soon as you get paid, deposit the amount you wish to save
in a bank or other location for safekeeping. That will help you to fight any
temptation to spend those funds.
Budget. This is the only practical way to monitor,
control, or reduce your spending. A good budget can give you a sense of where
your money goes, and it can help you to reach your financial goals. Know what
your income is, and spend less than you earn. Learn the difference between
needs and wants.
Plan. Carefully consider your future needs. For
instance, if you plan to purchase a house or an apartment, obtaining
a mortgage at a reasonable rate may be a good decision. Similarly, a family man
may feel the need to purchase life, health, disability, or other forms of
insurance to protect his loved ones. Considering your needs for the future may
also involve planning for retirement.
Learn. Invest in yourself by acquiring skills and
taking care of your physical and emotional health. These are investments that
will pay you back. Make learning a lifelong habit.
Balance. Keep money in its place. Survey after survey
shows that those who care more about people than they do about money are
happier. Some allow greed to throw them off balance.
TEACH YOUR CHILDREN TO
MANAGE MONEY
With so many adults in
financial trouble today, experts are urging parents to teach their children
about money—and to start early. Ask most children where money comes from, and
they might say, “Daddy” or “the bank.” If you can teach your children the value
of money—how to separate needs from wants, how to save, and how to invest—you
may help them avoid the heartache of crushing debt and economic slavery. Here
are a few suggestions.
1. Be a good example. Your children will generally imitate what you do
more than what you say.
2. Set spending limits. Discuss how much you and they can spend. Learn
to say no, and mean it.
3. Allow them to manage money. If they receive an allowance or earn money from
a job, give them some guidelines. Then allow them to make some decisions.
4. Teach them to share. Encourage your children to share what they have
with others(especially with the needy).
