The Beginners Guide To Basic Money Management

May 5, 2022 | Daniel Dewitt

man knows basic money management 

Basic money management is so much more than making more than you spend. It’s saving in the present to prepare for the future. It’s refining spending habits during different stages of your life. It’s eliminating stress and uncertainty as much as possible. It’s also easy to get started. Below, are the basic money management concepts everyone should know.

Tips For Basic Money Management

1. Prioritize Financial Organization

You can’t begin to effectively manage your money if you don’t know your finances in and out. Outline and then track everything finance-related in your name, including mortgages, loans, bank accounts, credit cards, and retirement accounts. Then track your progress, either on your own or through one of many available budgeting software products.

2. Identify Your Financial Goals

Basic money management isn’t just taking control of your finances today. It’s managing your money to fit a range of life goals, everything from paying down debt to buying a home and starting a business. Figure out your top priorities and go from there depending on what’s important to you in your life now. You don’t necessarily have to have a fast deadline to meet goals. You just need to get started.

3. Take a Hard Look at Your Spending Habits

When you make a budget, outlining your monthly income and your spending needs and wants, you can get a clear picture of your spending habits — and that’s a big part of basic money management. If there’s an overall need to cut back on spending (especially if you spend more than you make each month), run through your lists to pinpoint spending that you can cut entirely or tweak.

woman disregards basic money management

4. Understand the Concept of Needs vs. Wants

Speaking of a budget, be honest about your spending and divide each item into needs and wants. Needs include everything from rent or mortgage to food and utilities. Wants are anything that’s not vital, such as that brand new phone, eating out, or magazine subscriptions. You may be surprised to find out how much of your spending falls into the wants category.

5. Expect the Unexpected

Most people typically face a range of financial emergencies in their life, whether it’s the loss of a job, a hospital bill, or perhaps trouble paying a mortgage. Basic money management must include a savings plan, which can help you overcome financial emergencies quickly as well as safeguard your wellbeing when entering retirement.

In your budget plan or personal financial goal statement, be sure to carve out a place for regularly contributing to a savings account.

6. Face Your Debt

If you have debt, you’re not alone. The average American was saddled with over $90,000 in debt in 2021. Debt is scary, but it will begin to become less daunting if you chip away at it right now. Look through your debt and which items are contributing the most to it, whether it’s a credit card or student loans. Then create a plan to begin paying it down or eliminating it.

7. Don’t Neglect Bills

It can be easy to put bills out of sight and out of mind, especially if the due date is far off. Don’t. Be sure to pay all your bills on time to meet your financial goals and maintain a good credit history. A general basic money management rule of thumb: credit card payments should not be greater than 20% of your income and don’t fall into the hole of paying one creditor by borrowing from another.

8. Take Advantage of What’s Available to You

A big part of money management is being aware of all your options to establish financial wellbeing. One option when you’re facing a financial emergency is pursuing a title pawn online. Designed to help with short-term emergencies and not long-term financial difficulties, getting a title pawn online uses your vehicle’s title as collateral in exchange for a title pawn of up to $15,000 at Georgia Auto Pawn, Inc.

You don’t need a checking account to qualify, and you keep your car for the duration of the loan. It can take as little as 30 minutes to qualify for an auto title pawn. Just get started online by filling out the short title pawn form on our homepage. Very soon after you submit the form, one of our loan representatives from a location near you will give you a quick call to discuss auto pawns and guide you through the rest of the quick process.

Once you qualify and are approved, you get the cash you need the same day or the very next business day.

applying for title pawn over the phone

Get Your Title Pawn Today

A big part of basic money management is knowing where you can turn when you are faced with a financial emergency. Remember that you can pawn a car title online and get fast cash when this happens. Just start online, give us a call, or visit one of Georgia Auto Pawn, Inc.’s locations near you today.

 

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.