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Ryan Dieu Mrs. Mullins 7, April 2009

Managing Your Money 101

It is not easy to manage money, but this is a very important part of becoming an independent adult. When you start your first job (which will probably be a part time job), you will be expected to take on some of the financial responsibilities for you own care that were previously met by your parents or guardians. Perhaps you will have to buy your own cloths. You will certainly have to pay your own lunches and for transportation to and from work. “You will have to live within your means, which means spending no more than you earn, or buying things which you cannot pay (Krammer and Petrie 154). If you are to be successful in living within your means, you must have a plan for spending. People who do not plan often end up in trouble with credit accounts. College students are particularly at risk of overdoing it with credit if they use the many unsolicited credit cards to come to come to them in the mail almost as soon as they check into the dormitory. Jones tells parents to be sure that their college-age-students leave for college with a sensible spending plan and lessons on how to use credit. (29) In order to have a realistic spending plan, you need to think about your plans—both long-range and short-range. If you want to purchase a house, for example, you will need to begin saving money for a down payment. One of the most important things you can do is to think of savings as you think of paying your bills—something you do every month without fail. In fact, you should think of saving as a bill you pay yourself. You may be one of the many people who are always planning to save but are constantly confronted with other ways of spending money earmarked for savings. Certainly, saving requires discipline. (Porter 163) Single adults and families with young children should consider saving money for the future or providing for emergencies by investing in insurance (Topolnicki 45). Income-protection insurance will provide income for the single person or young family in case the breadwinner is unable to work. There is homeowner’s insurance to cover unexpected losses of property. Car insurance is also a must. For many people, the purchase of insurance is a good way to save money for future expenses. There are many different kinds of insurance to be considered when putting together a spending plan. There is help available for people who find themselves in need of help with money matters. General information can be obtained free of charge from government publications. Also, banks employ people who can provide you with information on savings and investments (Garner et al. 194-201. it would be worth your while to invest your time and money in a class to learn how to mange your money. Remember, no matter how much you earn, how you manage your money will determine the type of lifestyle you will be able to achieve.