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Money Management

Money Management

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Money Management

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  1. Money Management Week-3 Lecture-I

  2. What is Money Management? • It is to handle all of your finances, from budgeting to investing, to saving and setting goals. • Money management refers to the processes of budgeting, saving, investing, spending, or otherwise overseeing the capital usage of an individual or group.

  3. Principles of Money Management • Income • Savings • Spending • Investment

  4. Rule for managing money • The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings.

  5. Why is it important to manage money? • Money management is one of the most important parts of your financial life. Knowing how to how to budget, spend and save can help you reach your financial goals, get out of debt, and build your savings.

  6. What is Budget • A budget is a spending plan based on income and expenses. In other words, it's an estimate of how much money you'll make and spend over a certain period of time, such as a month or year.

  7. Personal Budget • A personal budget or household budget is a plan for the coordination of the resources (income) and expenses of an individual or a household.

  8. What is your perspective on budgeting? • Your success with budgeting may depend on your perspective. Some think budgets are meant to be restrictive, take the fun out of life, and make you feel shameful about spending. Others may view budgets as too time consuming to make or too difficult to follow. • In reality, budgeting is an empowering process. It puts you in control of directing your money towards what you really want in life, including having fun. With this in mind, taking the time to create a realistic budget you can follow will be well worth it.

  9. What is the budgeting process? • Identifying your priorities and goals • Creating a budget document that outlines your estimated monthly income and expenses • Tracking your actual spending and income • Making adjustments to the plan

  10. Creating Personal Budgeting • Step 1: Estimate your monthly income. • Step 2: Identify and estimate your monthly expenses. • Step 3: Compare your total estimated income and expenses, and consider your priorities and goals. • Step 4: Track your spending, and at the end of month, see if you spent what you planned. • Step 5: Stick with it

  11. Link for Personal Budgeting Plans Example • https://dfr.oregon.gov/financial/manage/pages/budget.aspx

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