From time to time, I need to remind myself and my clients about the basics of good money management and the importance of creating a solid foundation on which to build your financial future. The three basic tenets as I see them are as follows:
Live within your means and build a life you can afford.
- Create a spending plan
- Track your spending
- Pay off your credit cards each month
- Pay your bills on time
Know your family values and define your goals.
- Stay in-tune with what matters most. Let this guide your spending and saving.
Put your money where it will grow over time.
- Home, education and well-managed investments.
If you keep these basic tenets of good money management in mind each time you make a financial decision, big or small, you are more likely to make the right decision.