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Dancing with Money Basics

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Working with and understanding money usually starts with a few questions—four with a yes, no, not sure response.

  1. How much control do you have over your money? 


  2. Can you identify the three things money is good for.


  3. Are you super organized and know exactly how much money you have coming in and how you spend every dime?


  4. Do you have absolutely no idea how much money you have coming in and really don’t know where all of it goes?

 

How did you do? Did you answer yes to any of the above questions? Most can see themselves in at least two or three if not all situations at one time or the other. One of the reasons I decided to write Your Money: How to Get Hold of Your Money Before Debt Gets Hold of You is that I became frustrated reading other books in the genre called financial literacy. Why? Because they assumed that the reader already knew some of the basics. 

You can’t dance with the basics of money unless you learn a few steps.

Start with:

  1. Know where your money comes from for monthly needs. Is it a job? Savings? Trust? Where?

  2. Know what you spend money on each month. Include automatic payments; any credit card debt; rent; mortgage; all the miscellaneous items. Identify what you charge on your credit cards; what you write a check for; and for what you pay cash.

  3. Getting organized. This doesn’t have to be complicated. There are online tools, such as Quicken; there are computer Excel sheets; there are old fashion notebooks. What’s essential is to have current records and know where they are.

What were the items money is good for, did any of these make your list: spending for necessities, saving for a rainy day, and giving away to other people make it? I suspect you didn’t.

Your Money Tip:
If your money runs out before the month is over, it’s time for a money tune-up. Are you ready?



 

Patricia Lane Williams CPA is the author of Your Money: How to Get Hold of Your Money Before Debt Gets Hold of You. As a trusted resource for the accounting profession for over 30 years providing content for their continuing education. Her website is PatWilliamsAuthor.com and she can be reached at PatWilliams.Author@gmail.com.