Budgeting Best Practices

Managing Credit & Building Credit > How to Manage Money

Best Money Practices

When managing your money, there are a few best practices that will help you to get ahead, and stay ahead.

Pay Yourself First

When it comes to managing your money, make sure you put away your cut first.

Far too often, people can't find money to save because they spend first, then try to save what is left over.

While you're still young, get into the habit of automating your saving from the time you get your first job.

Simply open a savings account and have a portion of your earnings deposited automatically. This will build the habit of ensuring that you save before you spend.

Start a Emergency Fund

A study revealed that 44% of Americans don't have enough cash saved to handle a $400 emergency.

Once you have gotten into the habit of paying yourself first, the first benchmark should be to start a small emergency fund of at least $500.

Pay Down Debt

If you have any outstanding high interest debt, make it a priority to pay it down as aggressively as possible. The sooner you can get rid of debt, the sooner you can put your money to work for you.

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