Home > Money Management > MONEY MANAGEMENT TIP #8: TAKE CHARGE OF YOUR OWN MONEY MANAGEMENT!

MONEY MANAGEMENT TIP #8: TAKE CHARGE OF YOUR OWN MONEY MANAGEMENT!

November 7th, 2011

TAKE CHARGE OF YOUR OWN MONEY MANAGEMENT: When it comes to managing your money, the primary rule is to take charge of it yourself. Don’t make the critical mistake of delegating the responsibility of money management to someone else because in far too many cases delegating means neglecting.

I know that the whole concept of money management may appear at first to be too complex for average amateur investors to understand and do effectively. The good news is that it really isn’t.

The basic fact is that investing for the long-term is easy. On the other hand, trading for the shorter term is hard. All you have to do in order to simplify your money management strategy is three things: (1) put at least 80% of your money in a balanced portfolio of stable long-term investments, (2) set aside no more than 20% of your funds for trading purposes, and (3) remember to have plenty of cash available so that you don’t feel unnecessary pressure to make money quickly in order to pay current expenses.

By following the discipline of a well-designed money management plan, you will be able to let your assets grow over the long-term. You’ll also remain flexible enough to take advantage of short-term opportunities as well as meet your current expenses. Remember, when it comes to achieving financial wealth, nothing is more important than choosing a wise money management strategy to consistently follow over time.

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