November 27, 2007

Do you know how to manage your money?

Earlier today, my sister and I discussed managing money and investing. Again. I don't remember how old she was when I started bugging her about managing her money wisely. We usually discuss where she'll park her hard-earned money. Now I'm pleased to report that she's got savings and investments, plus pension and life insurance. I reckon she'll end up with more money than me, but that's ok. She's my sister.

Most of us finish our education learning the skills that will help us get by and survive the real world. I daresay I was provided with good, solid education, but not much really on money management. I know about freely falling bodies. I learned about various critical and cultural approaches and theories. Heck, I even learned about flower arranging, applying makeup, cooking, sewing, baking, public speaking, art in school way back when. But did we learn how to really manage our hard-earned money? NO. We go out to the real world without an idea what to do with our money. To think that it's one lesson that we really ought to have been taught.

Now why is this so? I mean, if we're all being trained and groomed to be hardworking workers, why aren't we being schooled about the ins and outs of money management? It doesn't take much brilliance to know how to spend. What takes discipline is knowing when to stop spending and knowing what to do with your money. Add to that the lure of the credit card. Yikes! When I use my credit card, I usually refer to it as "spending non-existent money". It usually keeps me in check.

Everyone would love to have money but what do you do when you have it already? Put it in checking, savings and/or money market accounts? Invest? Do have an automatic monthly investing plan? If not, why not? How many people out there actually plan their financial lives in the same way they plan everything else?


Lynn said...

I believe I might have been 23. Not too long ago :D