Money Management and Financial Advice
- According to a 2007 survey from MSN Money, the average American household has an average of $8,000 in consumer debt. High consumer debt is usually a sign of poor money management and can lead to difficult situations for families.
- Creating a budget for all household income is the most important part of personal money management. The first part of budgeting is to write down all necessary monthly expenses, such as rent, utilities and food; these necessities are usually the items that are needed to maintain a standard lifestyle. Other items such as clothes, cable TV or eating out are considered extra expenses that could be cut from the budget if needed. This list of necessities and extra items will help determine how much income is needed to maintain your current lifestyle.
After the budget is written out, each dollar spent for the following month should be tracked against the budgeted expense amount. Carefully reviewing how each dollar of household income is spent should then open up areas where savings can be created. The money saved in the budget can then be used to pay off debt or create a safety net for future emergencies. - Because so many people struggle with household budgeting and finances, finding good money management advice can nurture financial success. Two of the best financial gurus today are Dave Ramsey and Clark Howard. Ramsey specializes in helping people budget their income and pay off consumer debt. Ramsey's website offers free budgets and financial information relating to credit card and consumer debt.
Clark Howard is a consumer advocate who helps individuals understand the financial pitfalls of the American marketplace. He also hosts a website listing free items and coupons for people to save money on their monthly budgets. Howard also alerts consumers to scams that can drain consumers' bank accounts.
