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Financial Management. Learning to manage your money

Are you searching for a method of saving money for the future? Perhaps you are saving money for a college expense, if you are saving your emergency situations, or if you are saving money for your retirement there are many methods of saving money. 

You have so many options that it can be difficult to determine which method is best for you and your family. How are you going to decide? In this article, I hope to help you in determining on how to decide what type of financial planning is for you and your situation. 

Your individual goals and financial planning is something that you should take seriously. First, you need to sit down and decide exactly what you are saving for and how much you need to save. 

You could be saving for college, for purchasing a new car, for your retirement, for purchasing a home or even for a vacation of a lifetime. What ever you are budgeting for, and what ever you are saving for, has to begin with a number, a goal that you can break down. 

Starting with what you want, your goal, and how much you need to save, you break this number down and work backwards to the point of where you are now. What I mean is, possibly, you have six months, a year, five years, or perhaps you have twenty years to meet this financial goal of yours. Now you can break down how much you need to save per paycheck, per week, per month and so on to meet your goal. 

What is going to change in your life to meet the financial goals that you have set for yourself? The changes are going to be dependant on what type of family you have. If you have four children, if you have no children, if you are caring for a disabled spouse, or if you are out of work for a long period, these are all determinations that are going to affect how you get to your goal, and how long it is going to take you to reach your goals. 

The money you can draw from is going to be dependent on the type of family and income that you have. The more dependents that you have, the more difficult it can be to save money. The fewer dependents and bills that you have, the easier it is going to be to save money and reach your goals in the long term. 

There is one thing to keep in mind, there is no average family, there is no perfect budget � there is only a person, a family or a couple, working together to reach a financial goal!

Start talking to others in your life. Ask your parents how they save money. Ask co workers where they put money when saving it. Ask your friends how they save money, how much, and what goals they are working towards. You will find that many people have similar goals, but the ways of saving money are very different. 

Learn about your income. How much can you expect to have this month, this year and in the next five years. 

How does this compare to the goals of what you are saving up for? Is there a percentage that you will be able to save or is your income stretched to the limits already?

If you have to, cut down on your day-to-day expenses. How can you spend less in what you do daily? Take a bus, take a cab, or buy a car? Will you save money by shopping at a different store or will you save money by packing your lunch? There are various ways to cut back on your daily expenses to find the money needed to save for your financial goals. 

After paying your bills and paying yourself in the means of putting money in your savings, you can then use the extra money for luxuries, for the extras in life and for your spending daily. After you have been in this habit for a few months, you won�t even seem to miss the money you are putting aside for saving. 

One thing to keep in mind that without planning and without some type of budget no matter how rough or outlined, your financial planning is going to fail. It doesn�t take long to think about how much money you need to save up, but it does take a change in life to actually put that money away every week. 

If you are planning for a more long term financial situation, say for retirement, for college education or for a major purchase of a home or car, you will need a safe place for your money. A safe place is a safe deposit box, a savings account, a mutual fund account or another type of financial vehicle that is going to secure your money while it grows. 

How can you determine what type of financial vehicle is going to best suit your needs and can be trust worthy at the same time? Make a listing of all of your options. Make a listing of what you know about these different methods of savings. How much interest is there? How much can you lose? How easy is it for you to use that money in case of emergency? 

Be sure to list the downfalls of each type of investment or company that you are considering investing with. Is the rate of return very low? Is the company on the up and up or do they have a bad reputation? Ask others where they invest their money and who they deal with to find companies that are most reputable and popular in your own area.

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