Money management can be quite difficult, especially when you are doing it for the first time. Even basic money management skills are usually not taught at school. Students are just expected to know how to manage money right after they graduate high school. The amount of debt that students take on in the U.S. during school is unimaginably large. They spend the rest of their life paying off their debt. All that while supporting themselves and their families. According to 2020 debt statistics, $45 million Americans collectively owe around $1.56 trillion in the United States of America. The U.S. Student Loan Debt has become the second-highest consumer debt in the country, right after mortgage debt. Student loan debt is currently higher than both auto loans and credit cards.
Author and financial realist, Ronnie F. Lee discusses the basic principles of money management in his latest book, Know Money No Problem. Growing up, Lee’s family faced a lot of financial struggles, the kind that put a strain on the whole household. His father was the sole provider of the house. Managing the house on a single paycheck became increasingly difficult due to the financial mistakes Lee’s parents made. This taught Lee all he knew about money management. In the book, which serves as an intensive guide to wealth management and acquisition, he shares effective tips and strategies to help Americans with an average income to find financial success.
Following the basic steps of good money management gets easier when you set short and long term financial goals, then committing to them. You can start by evaluating your spending. You can do this once a week, once a month, and quarterly during the year. This can help you map out a complete picture of your financials and budget. Once you are aware of that, you can adjust your habits and budget to help you achieve your goals faster. The next thing you can do is clarify your current financial position. This will help you avail opportunities to invest in, which can boost your financials. Setting goals and writing them down can keep you motivated and enthusiastic about your pending financial success. Prioritizing paying off your debts and creating a suitable budget can aid in improving your home budget. Financial planning can be way simpler if you stick to the basics of money management. With Lee’s book, it’s all in writing and easily accessible.
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