Thursday, June 11, 2009
Budget Right: The Importance of Money Management
If you're like me, then you probably have more than one checking account at more than one bank. Tracking and taking care of your finances isn't as simple as it sounds when you have multiple accounts. Add to this the debt you owe on your house, car or credit card, and not to mention your investment portfolios, and you've got a bundle to deal with.
That's why I advocate money management systems. With these, you can view all of your accounts in one place, giving you peace of mind and time left to do what matters most to you. If you find yourself overwhelmed or spending too much time tracking the spending of every penny in each account, then it is very important that you enroll in a money management system that will help you get organized. I currently track all of my spending and accounts in one place, and it has simplified my life beyond belief.
I remember when I first sat down with my grandmother to learn how to balance a checkbook. It was an exciting time for me, having started to earn my own money and stockpile it away in my very own bank account. Since I was only 16 at the time, I only had one paycheck to worry about, most of which went to fueling my run-down truck so I could deliver newspapers in the morning and attend college classes in the afternoon. And though the lesson was simple, I still carry it with me as I balance my finances today. I cherish that moment when money management skills were handed down to me, for it taught me the importance of doing so.
Recently while reviewing my checking account I cam across an item that looked like identity theft or check fraud. So I called up my bank and discussed the situation with them. We decided it would be best to freeze out debit cards until we had figured it out. I told them to freeze both my and my husband's cards. They told me to get a hold of him to let him know what I was doing. I replied that I would of course, and that it was ok for them to do so considering my husband and I have very good communication with our finances. The lady responded, "That's really great- you know not very many people have that. Really great." I took it as a compliment.
If I had not learned the importance of money management while I was still young, I may not have noticed the fraud activity in my account. It just proves that diligent money management pays off in the long run.
What important money management skills did you learn growing up?
Also, don't forget to enter the 100th post contest on Wallet Wise. Click here! Only 13 days left!
Posted by Rachel at 7:52 AM