Poor Money Management
By Allison Roberts on Wednesday, September 26th, 2007 :: 3:53 pmCategory: Watching Out 4 You
Poor money management is a leading reason people accrue extreme credit card debt. Typically, it is sheer ignorance or apathy that leads to overwhelming debt. In a country of consumers struggling with debt, adherence to a monthly spending plan is essential for financial survival.
Poor money management results in bad spending habits. For example, not tracking your expenditures causes you to use money ineffectively. You may charge items that you should pay cash for and accumulate a lot of interest on your credit card balance.
The key to a monthly spending plan is simplicity, and adhering to it takes discipline. You must know:
- How much money you make (after taxes and other deductions)
- How much you charge on your credit cards
- What your payments are each month
- Other monthly financial obligations (mortgage, rent, bills, loans, etc.)
Once you have this information, organize it in a spreadsheet or on paper. Once you see your money in black and white, you will better grasp the reality of your financial situation. Additionally, it will be easier to think about your long-term finances.
The simple knowledge of how you spend money is a powerful method to combat ignorance and apathy concerning your money management skills.
Author Bio: Allison Roberts is a graduate of the University of North Texas Department of Journalism. She has experience in agency and in freelance public relations. Allison currently writes for Credit Solutions and she is completing an unfinished work of her late grandfather. For more articles by Allison on debt consolidation visit Credit Solutions.
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