| 2008 Jo Ann Brown - All rights reserved. |
Money Management Report
NOTICE: You DO Have the Right To Reprint or Resell this Report! You Also May Give Away, Sell or Share the Content Herein |
Copyright 2008 Jo Ann Brown
ALL RIGHTS RESERVED. You my sell or give away this report as long as it is not altered in any way, falsely misrepresented or
distributed in any illegal or immoral manner.
DISCLAIMER AND/OR LEGAL NOTICES:
The information presented herein represents the view of the author as of the date of publication. Because of the rate with which
conditions change, the author reserves the right to alter and update his opinion based on the new conditions. The report is for
informational purposes only. While every attempt has been made to verify the information provided in this report, neither the
author nor his affiliates/partners assume any responsibility for errors, inaccuracies or omissions. Any slights of people or
organizations are unintentional. If advice concerning legal or related matters is needed, the services of a fully qualified
professional should be sought. This report is not intended for use as a source of legal or accounting advice. You should be
aware of any laws which govern business transactions or other business practices in your country and state. Any reference to
any person or business whether living or dead is purely coincidental.
ALL RIGHTS RESERVED. You my sell or give away this report as long as it is not altered in any way, falsely misrepresented or
distributed in any illegal or immoral manner.
DISCLAIMER AND/OR LEGAL NOTICES:
The information presented herein represents the view of the author as of the date of publication. Because of the rate with which
conditions change, the author reserves the right to alter and update his opinion based on the new conditions. The report is for
informational purposes only. While every attempt has been made to verify the information provided in this report, neither the
author nor his affiliates/partners assume any responsibility for errors, inaccuracies or omissions. Any slights of people or
organizations are unintentional. If advice concerning legal or related matters is needed, the services of a fully qualified
professional should be sought. This report is not intended for use as a source of legal or accounting advice. You should be
aware of any laws which govern business transactions or other business practices in your country and state. Any reference to
any person or business whether living or dead is purely coincidental.
Introduction
Special Report Print This Out First
Special Report Print This Out First
Money
Management
Management
Personal money management means to change the way you
think about spending and saving money.
Living from paycheck to paycheck and thinking that you don't
have money to save will now be changed.
This book will help you find the money to start saving.
Not only will you learn how money is being wasted, you will learn
how to barter and negotiate for better prices.
PRICE - $9.99
BUY NOW
think about spending and saving money.
Living from paycheck to paycheck and thinking that you don't
have money to save will now be changed.
This book will help you find the money to start saving.
Not only will you learn how money is being wasted, you will learn
how to barter and negotiate for better prices.
PRICE - $9.99
BUY NOW
Then join the club of the thousands of people who share this same problem.
Generally when you receive income it is either directly deposited into your checking
account or you go to the bank to make a deposit.
Typically these funds head straight to the checking account so they are
available to pay the seemingly endless stream of bills.
P -Planning - set short term and long term goals.
A- Allow money for an emergency fund.
Y- You give allowances and teach good spending habits.
Y- Your household budget should include saving.
O- Ownership versus loanership.
U- Understand financial jargon.
R- Review the plan frequently and change if needed.
S- Start a saving plan the day you are hired.
E- Evaluate your company's 401k plan.
L- Learn how to save using mutual funds.
F- Find an on-line banking account that you like.
F- Find the right investments.
I- Inform others - "Getting Started On Your 401k Plan".
R- Rebalance your investments annually.
S- Save for retirement.
T- Teach your children how to save.
What Does - "Pay Yourself First" - Mean?
A lot of people have the wrong interpretation of the simple phrase
"Pay yourself first".
I've asked several people, and these are some of the things I've been told.
• After I pay my bills, and purchase the items I need, I then put something in
the bank.
• I set aside a dollar a day. I deposit it at the end of the month.
• I have set up automatic monthly deductions from my bank account.
Most people save money as an afterthought.
When they receive income the money is allocated to bills, groceries, rent or a
mortgage or daily expenses among other things.
The only time adding money to savings is when there is money left over.
Unfortunately with this backwards thinking there is almost never any money
left over to save.
The best plan is a sure plan.
When does Uncle Sam get paid? When does the State get paid? When does
Medicare and Health Insurance get paid?
These deductions are made before you receive your check.
They don't wait and neither should you.
Payroll deduction's is the easiest way to "Pay Yourself First" says money tutor,
Jo Ann Brown.
Use your company's payroll deduction plan, if available, and arrange for a fixed
amount to be taken out of your paycheck. Your employer will send these funds
to an account of your choice before you receive your check.
It doesn't matter if it is $10 or $500, simply having this happen automatically
will ensure money is saved every time you are paid.
When deposits are made into a savings account automatically and regularly you
don't have to think about it and the money is deposited before you have time to
worry about expenses or how much money will be left over.
Automatic Saving is Easy
If you don't have direct deposit there is still an easy option available if you do
your banking at a local branch.
Typically your bank can link checking and saving accounts together and
establish automated transfers between accounts at a regular interval that you
select.
So if you cash your paycheck every other Friday you could establish an
automatic transfer of a set amount of money from checking to savings to coincide
with this deposit
Proper planning would help you avoid making the common mistakes of
overextending your income.
For starters, plan on spending only 1/2 of your income on your needs.
Your needs would include rent, car note, insurance, food, etc.
You should be spending only $750 for these items, if you take home $1500 a
month.
Pay a minimum of $300 per month to your parents for rent, gas, lights,
telephone, home cooked meals, and laundry facilities that include washing
powder and detergent.
These are the same items you would have to purchase if you lived in an
apartment.
You should offer this payment because it is the decent thing to do and it sets the
foundation of not taking advantage of people.
You now have $450 to give yourself an allowance, pay a car note, insurance, and
save, which are also needs that you must provide.
Remember, you are not trying to tie up all of your income.
So what, you have $1200 left.
Using the $450 - give yourself a $50 weekly allowance ($200) and save $50 per
month.
To purchase a car, you must have a down payment, insurance, and you will have
to pay state taxes and buy tags for the car. Now you have $200 for a car note
and insurance.
You probably will not be able to get a decent car at this time but you can
consider public transportation. Save $200 per month for these expenses (taxes,
tags, down payment, and insurance).
Managing your money and learning to live off of $750 you have now
accomplished the following.
1. $50 monthly saving = $600
2. $200 monthly saving = $2400
3. $750 monthly saving = $9000
You’ve created 3 different saving accounts.
You can now purchase a car for cash and pay all of the expenses (taxes,
insurance, and tags) without putting yourself in debt or depleting your account.
You will not have a car note or insurance bill because you have paid for it with
cash.
You've successfully accomplished your first short term objective - purchasing a
car. You will continue to have other short term objectives and they can all be
accomplished with using proper money management skills.
WHEN IS A SAVING'S ACCOUNT A GOOD IDEA?
Saving is the first step in a financial plan and there are several ways you can
save money.
• Passbook Savings Account
• Statement Savings Account
• Money Market Account
• On line Account
• Money Market Mutual Fund
Everyone should have enough cash on hand to see them through a three to six
month hardship.
A saving account can be a great place to build and keep your emergency fund.
What constitutes an emergency?
• Unemployment - commonly caused by dismissal/getting fired,
job relocation, outsourcing, and lay offs.
• Car repair if you only have one car.
Getting your only car running again is an emergency, replacing a broken
television is not.
Your initial savings account should be liquid, meaning you can get your money
out at any time.
Your initial savings account should also be at a low risk financial institution.
The first rule of careful investing: Don't lose money. The money tutor, Jo Ann
Brown's book "Getting Started On Your 401(k) Plan" discusses in detail where
you should start investing after you have saved your emergency fund.
The interest earned on a savings account will vary considerably.
Most traditional banks pay very little interest on savings accounts.
You can earn a higher interest rate by using one of the high-yield savings or
money market accounts that are found online.
Deciding where to open your initial account is your decision.
The following gives a list of w of some existing on-line accounts.
HSBC Direct www.hsbcdirect.com
ING Direct www.ingdirect.com
E*Trade Financial www.etrade.com
EverBank www.everbank.com
Continue saving your money in a on-line bank account for the best returns or
your local bank until you have enough to live on for 3-6 months.
This is also known as an emergency fund.
How much do you need?
You will need to prepare a budget.
Four Steps To Preparing A Budget
Step 1 - Figure out how much income you have. Add all of your
income sources together.
• Take home pay
• alimony
• child support
Step 2 - Write down what you think you will be spending in the
following categories:
Housing:
• Rent or Mortgage
• Property taxes
Food:
• Groceries
• Restaurant meals
• Lunches at work
• School lunches
Utilities:
• Electric
• Gas
• Telephone
• Cell phone
• Long Distance
• Water
• Garbage
Personal:
• Prescriptions
• Laundry
• Dry Cleaning
• Hair Care
• Clothing
• Toiletries
Family:
• Child Support
• Day care
• Babysitting
• Children’s allowance
• Pet food/supplies/veterinarian
Basics:
• Furniture
• Appliances
• Home cleaning/repair supplies
Transportation:
• Car payment
• Gasoline
• Oil
• Repairs
• Tires
• Registration
• Inspection
• Public Transportation
• Parking
Insurance:
• Car
• Life
• Property/casualty
• Disability
• Renter
• Burial
Recreation and Entertainment
• Hobbies
• Vacation
• Shows/Movies
• Dining/Entertainment
• Alcohol
• Tobacco
• Lottery tickets/gambling
• Cable TV
Gifts
• Church
• Birthdays
• Holidays
Savings
Miscellaneous
Step 3 - After you have created your budget, you need to keep records of your actual income and expenses.
This will help you see the difference between the amount you budgeted and what you actually spent.
Step 4 -As you track your monthly expenses, you may need to trim expenses. Cutting back is usually a better place to
start than cutting out.
You’ll be better prepared for emergencies if your budget is realistic and if you use it to guide your expenses.
Create an emergency fund. The next time you are tempted to buy a gorgeous pair of $350 shoes, remember that
impulse buys eat into your rainy-day fund and if you fall ill or have an accident, or lose your job, you’ll need to make
sure that you have at least three to six months savings.
Saving money is a good habit to acquire.
You may have money to save and not know it.
You could have already lost
$1,000,000
Because of
Bad Spending Habits
Over paying your insurance premiums
Not renegotiating the interest
on your credit cards
If You Think
You Can't
Save Money
THINK - AGAIN
INTRODUCING
Personal Money Management
The Comprehensive Guide
To Find Money To Save
Using Your Existing Budget
Generally when you receive income it is either directly deposited into your checking
account or you go to the bank to make a deposit.
Typically these funds head straight to the checking account so they are
available to pay the seemingly endless stream of bills.
P -Planning - set short term and long term goals.
A- Allow money for an emergency fund.
Y- You give allowances and teach good spending habits.
Y- Your household budget should include saving.
O- Ownership versus loanership.
U- Understand financial jargon.
R- Review the plan frequently and change if needed.
S- Start a saving plan the day you are hired.
E- Evaluate your company's 401k plan.
L- Learn how to save using mutual funds.
F- Find an on-line banking account that you like.
F- Find the right investments.
I- Inform others - "Getting Started On Your 401k Plan".
R- Rebalance your investments annually.
S- Save for retirement.
T- Teach your children how to save.
What Does - "Pay Yourself First" - Mean?
A lot of people have the wrong interpretation of the simple phrase
"Pay yourself first".
I've asked several people, and these are some of the things I've been told.
• After I pay my bills, and purchase the items I need, I then put something in
the bank.
• I set aside a dollar a day. I deposit it at the end of the month.
• I have set up automatic monthly deductions from my bank account.
Most people save money as an afterthought.
When they receive income the money is allocated to bills, groceries, rent or a
mortgage or daily expenses among other things.
The only time adding money to savings is when there is money left over.
Unfortunately with this backwards thinking there is almost never any money
left over to save.
The best plan is a sure plan.
When does Uncle Sam get paid? When does the State get paid? When does
Medicare and Health Insurance get paid?
These deductions are made before you receive your check.
They don't wait and neither should you.
Payroll deduction's is the easiest way to "Pay Yourself First" says money tutor,
Jo Ann Brown.
Use your company's payroll deduction plan, if available, and arrange for a fixed
amount to be taken out of your paycheck. Your employer will send these funds
to an account of your choice before you receive your check.
It doesn't matter if it is $10 or $500, simply having this happen automatically
will ensure money is saved every time you are paid.
When deposits are made into a savings account automatically and regularly you
don't have to think about it and the money is deposited before you have time to
worry about expenses or how much money will be left over.
Automatic Saving is Easy
If you don't have direct deposit there is still an easy option available if you do
your banking at a local branch.
Typically your bank can link checking and saving accounts together and
establish automated transfers between accounts at a regular interval that you
select.
So if you cash your paycheck every other Friday you could establish an
automatic transfer of a set amount of money from checking to savings to coincide
with this deposit
Proper planning would help you avoid making the common mistakes of
overextending your income.
For starters, plan on spending only 1/2 of your income on your needs.
Your needs would include rent, car note, insurance, food, etc.
You should be spending only $750 for these items, if you take home $1500 a
month.
Pay a minimum of $300 per month to your parents for rent, gas, lights,
telephone, home cooked meals, and laundry facilities that include washing
powder and detergent.
These are the same items you would have to purchase if you lived in an
apartment.
You should offer this payment because it is the decent thing to do and it sets the
foundation of not taking advantage of people.
You now have $450 to give yourself an allowance, pay a car note, insurance, and
save, which are also needs that you must provide.
Remember, you are not trying to tie up all of your income.
So what, you have $1200 left.
Using the $450 - give yourself a $50 weekly allowance ($200) and save $50 per
month.
To purchase a car, you must have a down payment, insurance, and you will have
to pay state taxes and buy tags for the car. Now you have $200 for a car note
and insurance.
You probably will not be able to get a decent car at this time but you can
consider public transportation. Save $200 per month for these expenses (taxes,
tags, down payment, and insurance).
Managing your money and learning to live off of $750 you have now
accomplished the following.
1. $50 monthly saving = $600
2. $200 monthly saving = $2400
3. $750 monthly saving = $9000
You’ve created 3 different saving accounts.
You can now purchase a car for cash and pay all of the expenses (taxes,
insurance, and tags) without putting yourself in debt or depleting your account.
You will not have a car note or insurance bill because you have paid for it with
cash.
You've successfully accomplished your first short term objective - purchasing a
car. You will continue to have other short term objectives and they can all be
accomplished with using proper money management skills.
WHEN IS A SAVING'S ACCOUNT A GOOD IDEA?
Saving is the first step in a financial plan and there are several ways you can
save money.
• Passbook Savings Account
• Statement Savings Account
• Money Market Account
• On line Account
• Money Market Mutual Fund
Everyone should have enough cash on hand to see them through a three to six
month hardship.
A saving account can be a great place to build and keep your emergency fund.
What constitutes an emergency?
• Unemployment - commonly caused by dismissal/getting fired,
job relocation, outsourcing, and lay offs.
• Car repair if you only have one car.
Getting your only car running again is an emergency, replacing a broken
television is not.
Your initial savings account should be liquid, meaning you can get your money
out at any time.
Your initial savings account should also be at a low risk financial institution.
The first rule of careful investing: Don't lose money. The money tutor, Jo Ann
Brown's book "Getting Started On Your 401(k) Plan" discusses in detail where
you should start investing after you have saved your emergency fund.
The interest earned on a savings account will vary considerably.
Most traditional banks pay very little interest on savings accounts.
You can earn a higher interest rate by using one of the high-yield savings or
money market accounts that are found online.
Deciding where to open your initial account is your decision.
The following gives a list of w of some existing on-line accounts.
HSBC Direct www.hsbcdirect.com
ING Direct www.ingdirect.com
E*Trade Financial www.etrade.com
EverBank www.everbank.com
Continue saving your money in a on-line bank account for the best returns or
your local bank until you have enough to live on for 3-6 months.
This is also known as an emergency fund.
How much do you need?
You will need to prepare a budget.
Four Steps To Preparing A Budget
Step 1 - Figure out how much income you have. Add all of your
income sources together.
• Take home pay
• alimony
• child support
Step 2 - Write down what you think you will be spending in the
following categories:
Housing:
• Rent or Mortgage
• Property taxes
Food:
• Groceries
• Restaurant meals
• Lunches at work
• School lunches
Utilities:
• Electric
• Gas
• Telephone
• Cell phone
• Long Distance
• Water
• Garbage
Personal:
• Prescriptions
• Laundry
• Dry Cleaning
• Hair Care
• Clothing
• Toiletries
Family:
• Child Support
• Day care
• Babysitting
• Children’s allowance
• Pet food/supplies/veterinarian
Basics:
• Furniture
• Appliances
• Home cleaning/repair supplies
Transportation:
• Car payment
• Gasoline
• Oil
• Repairs
• Tires
• Registration
• Inspection
• Public Transportation
• Parking
Insurance:
• Car
• Life
• Property/casualty
• Disability
• Renter
• Burial
Recreation and Entertainment
• Hobbies
• Vacation
• Shows/Movies
• Dining/Entertainment
• Alcohol
• Tobacco
• Lottery tickets/gambling
• Cable TV
Gifts
• Church
• Birthdays
• Holidays
Savings
Miscellaneous
Step 3 - After you have created your budget, you need to keep records of your actual income and expenses.
This will help you see the difference between the amount you budgeted and what you actually spent.
Step 4 -As you track your monthly expenses, you may need to trim expenses. Cutting back is usually a better place to
start than cutting out.
You’ll be better prepared for emergencies if your budget is realistic and if you use it to guide your expenses.
Create an emergency fund. The next time you are tempted to buy a gorgeous pair of $350 shoes, remember that
impulse buys eat into your rainy-day fund and if you fall ill or have an accident, or lose your job, you’ll need to make
sure that you have at least three to six months savings.
Saving money is a good habit to acquire.
You may have money to save and not know it.
You could have already lost
$1,000,000
Because of
Bad Spending Habits
Over paying your insurance premiums
Not renegotiating the interest
on your credit cards
If You Think
You Can't
Save Money
THINK - AGAIN
INTRODUCING
Personal Money Management
The Comprehensive Guide
To Find Money To Save
Using Your Existing Budget