Back to Basics: Three Tenets of Good Money Management

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:

1. 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

2. Know your family values and define your goals.

• Stay in-tune with what matters most. Let this guide your spending and saving.

3. 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.

Financial well-being is about making wise decisions and not about making more money.