Money Management Doesn’t Begin With Wealth

What exactly is money management? How much money do you need before you start managing it?

Basic Money Management

If you have any amount of money, you decide what to do with it.

Perhaps you will spend it as planned – or not because of an unexpected expense such as car or home repairs. Will you spend it all, or will you save some of it?

This is the very basic of money management.

Unfortunately, I thought that to manage money you had to have some, and plenty of it at that. Whether you have one dollar or a hundred dollars, whatever you decide to do with it is money management. However, if you have spent it all in one place, well, you’re certainly spending your money, but you aren’t managing it very well.   

Even Children Manage Money

Consider two children with a $10 allowance per week. 

One child spends the allowance in full by day’s end the day it was received. Consequently, that child has nothing left to manage. The second child decides to spend five dollars and save five dollars. Sadly, the following week, the first child again spends the money in its entirety while the other spends five and saves five.  At the end of just one year,one child has nothing to show for their allowance while the other has $260.

This is money management at its most basic level. 

Make Money, Spend Money, Save Money

Good money management skills includes having income, paying expenses and saving a designated amount. In time, you will be able to pay off loans, credit card debt and eventually decide to purchase stock, invest in real estate, or start a business venture. Investments such as rental property are attractive because they generate passive income.  

Lazy-Girls need income, little to no debt, and money socked away for a rainy day. We don’t want to stress over house or car payments, utility bills, or the when need for a new refrigerator arises. Being lazy is what we do best!

Like this article? Simplify your life using the Lazy-Girl Guide to Life tips on how to run your household, manage your money and feed your family.