Introduction
Money is essential for our day-to-day living. When you first complete your education and enter a job, it could prove difficult to manage the amount of money that you get as salary. Some of you might be offered with the kind of money you never expected while some others with very less amount of money. Whatever the situation is, having a proper money management plan is essential for your future and present life to a great extent. You will find many ways to manage what money you make from the job. However, it is up to you in choosing the method and making it work.
History
In most cases, what money management experts say is to set financial goals. This is what money management is all about. Setting goals will help you to work towards the goal with what money you have. First thing for you to do is divide the money goals into different categories like long term goals, short term goals, etc. This will give you an idea about what money to save and what money to use right now.
Features
Setting short terms goals are quite easy. These goals say what money you can save and deposit into your savings account, or clearing a debt or loan that you have etc. Short term goals should have a time period not more than 6 or 8 months. Some goals need more time where you can plan to achieve certain goals for the next year or so. This comes under medium term goals. The third type of money goal you can set is long term goals. This determines what money you can spend over a period of more than five years time and what money you can save. This includes planning your retirement, sending your children to college etc. These are things which require lots of money.
Tips and comments
To successfully set these goals, and follow them, there are many things which you can do. First of all, plan budget for a month well in advance and try your best to stick on to the budget. It sounds very easy, but it takes real discipline and work to achieve this. You have to be aware about how you spend your money. It is very important that you keep your spending well under the amount of money that you earn monthly. Keeping a record of your monthly earnings and expenses will help you to realize where things went wrong and how you can correct it in the coming month. Keeping track of the expenses will help you identify the areas where you spend most of your money. This can help you to control expense during the coming months. When you plan your budget for the month, it could be helpful if you break down each month into weeks and planning expenses for each week. Review your budget plan at the end of a month and if it is not working for you, be ready to make changes to the plans and take the new plans into action.
