Insiders On: Money

Following up on the Insiders recent discussion about how to properly pack, plan, and manage a trip or vacation, we've decided to provide some additional resources and ideas concerning money management.  Juggling finances is a challenge for many people, but it's also a significant indicator of adulthood and being responsible.  As we talked about money, a few things became clear...

"Let's face it, managing money can be pretty complicated. When you're aware of where your money’s going, however, it feels good!"

Money management isn't easy.  In fact, it can take a lifetime to perfect.  The more a person can manage their money and budget responsibly, however, the more they will feel in control of their life and choices.  This is good habit to get into since managing money responsibly builds confidence and self-esteem, which motivates a person to continue managing finances properly.  The opposite of this is true as well.  People who struggle to manage their money might feel too discouraged to make any significant behavioral changes.

"Focus on making smarter choices with your money."

One thing we can all do to help our piggy bank grow is practice some self control and make smarter choices when spending money.  If you've ever purchased something off an impulse, you understand how tempting it is to get something "in the moment."  Practice asking yourself the following questions before you make such purchases: "Do I really need this item right now?" "If this is a need, is there a more suitable and cost-effective alternative?" "Are there any emotions that I'm attaching to this purchase?"

Most people can easily identify smart money choices on paper, but when the moment arrives they fall short of that expectation.  In cases like this, the impulse becomes more powerful than the plan.  When making a purchase, you should always be mindful of whether you're listening to an impulse or a planned course of action.  If you feel you're acting off an impulse, slow down (if you're already on your way to the checkout line, stop).  Ask yourself whether this is part of the plan or not.  Reason with yourself on whether there's a better solution than making this purchase.  Perhaps you don't have any spending money in your budget, or maybe you have other hobbies that need more attention.  In any case, if you can't find any good reason to make the purchase, put the item back.  If it's a bigger purchase, give yourself time and space to make the best decision.  Even write down the pros and cons if you have to!

"Managing money requires strategy — your own custom strategy!"

While there are many tools available for managing money, most people will advise that you develop your own strategy for your own finances.  This requires patience, experience, and hard work.  Some people keep their budget on a spreadsheet, while others are happy to keep everything written down on paper.  It really depends on what works for you.  If you know you have the tendency to be disorganized, keeping things on a computer might be the way to go.  There are plenty of apps and websites available as well to help you manage things a little better.  A few of these are listed below:

• mint.com — A useful website for managing money.  Also has a downloadable app!
• smartypig.com — A website that helps you save money for your own personal goals.
• debtfreeadventure.com — Features a blog and advice about getting out of debt.
• themint.org  — An introductory site that covers many financial terms; also has exercises and challenges meant for younger audiences.

IF YOU HAVE ANY ADDITIONAL ADVICE WHEN IT COMES TO MANAGING MONEY, PLEASE LET US KNOW IN THE COMMENTS SECTION BELOW!