Who needs money management tips on how to ruin their financial lives? Please raise your hand. No one? This is certainly a surprise. Given the many people with money issues when we look around our families, relatives, friends, and associates, I cannot help but wonder that some of them actually did receive money management advice of this nature. Whatever it is, in case you are still keen to ruin your financial life, follow these top 3 money management tips for beginners and you can be sure to get the results!
First, forget about setting money management goals to address any financial concern. Why? Let me ask you a question. How many New Year resolutions have you made, and how many of them have you kept? Come on, be honest with yourself. See? That is exactly why trying to set a money management goal is a waste of time other than a way to kill off some brain cells.
I am not saying you cannot have dreams of retiring at Bahamas and living the good life one day or something. Sure you can. No one is stopping you. Just do not waste time and energy going into the specifics like when you want to retire, how much money you need, and what investments will help you get there.
By the way, always dream big. Do not sweat the small stuff–small money included. Having the discipline to save for a TV or car purchase is unnecessary and could be bad for you. The satisfaction of achieving a smaller cash objective can be addictive. It motivates you to do more and more of it and that means work. There is absolutely no need to train yourself to build up funds little by little. All you need is a big win on the lotteries or horses you bet on to take care of everything.
Since we touch on the subject of savings, I might as well give you the second of the money management tips to wreck havoc on your personal finances: Savings is the last item you need to put on the shopping list. Spend all the money to your heart’s desires regardless of your income resources. Whatever cash you have left–not that it is likely to happen if you heed this advice–at the end of the month can then go into the savings account. Putting aside a fixed amount or percentage of your money first only keeps the bank accounts growing and growing. What good can those savings do?
You do not need an emergency fund for sudden medical bills. You are in the pink of health. No worry of unexpected illness striking, isn’t it? What about car accidents? Well, they only happen to the other unlucky folks. Besides, your driving skills are superb. You have zipped along the highway at 200 miles so many times without trouble. How about saving for retirement investment? Perhaps, except that you are still young and retirement is a long way ahead. It is not too late to start retirement planning 30-40 years down the road when you are in the 50’s or 60’s, right?
Instead of paying yourself first to build up the savings, think of all the fun and entertainment you are missing! So shop till you drop and enjoy life to the fullest with every penny you have.
Now is the perfect time to introduce the third and last of the top 3 money management tips to crash your personal finances: Never ever track your spending. You do not need to be reminded of your impulse purchases or bad spending habits which a good record system will reveal. Paper notebooks are for idle doodling and are not record books to track expenses. Computers are meant for games and online chats. Personal budgeting software like Quicken or Microsoft Money are best left to the accountants and have no place on your laptop.
So, what if you overspent and ran out of cash? No problem. The almighty plastics can take care of it. Simply whip out a credit card and charge your expenses to it. If need to, you can always apply for another one to extend your credit further. They are not called the credit cards for nothing you know.
How about all the credit card debts you owe? No problem there either. After all, you can just pay the minimum monthly and push the remaining balances away for yet another month. The banks can slap all the interests and penalty fees they want on the outstanding balances. No hurry for full repayment so long as you do not have to pay it now.