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how does a home equity loan worka good money choice

Money Management Tips and Tricks

Money is what makes the world go ground.  Each of want it, we work for it and there just never seems to be enough of it when we need it.  The US economy is a very volatile market.  Depending on where you live in the world, your income, expenses and your debt will vary greatly.

When making money we trade time for dollars.  Walking into a place of business, doing specific tasks for an eight hour day forty hours a week for a set dollar amount is how the majority of Americans spend their day.  The problem with this is that doing the same thing over and over again doesn’t gain us different results.

For those who can really enjoy our lives, move forward in goals and have their efforts mean something are those that know and understand money management.  For those that rely on credit cards, payday loans and other sources of quick cash are just wading in a pool waiting to drown.  Knowing how money works, how does a home equity loan work and the interest on our credit cards affects our lives will be the first steps in mastering the money management process.


In order to master money management people need to set, understand, work with and stick with a budget.  A budget is the maximum money that you will spend, save and have access to during a specific period of time.  The majority of us will have a budget that doesn’t change each month.  This may make the process more difficult but it is still workable.

Debt to Income

When managing your money it comes down to debt and income.  The more debt you have the more income you need to make to pay it back and the more money you can save the less debt you need to accumulate.  When looking at your debt it is important to pinpoint where it is.  Is it from loans, from money you borrowed from friends and family or is it from over spending from credit cards?

Where is your income?  How much do you make an hour?  What is your take home pay at the end of the week?  Do you get paid weekly, bi-weekly or monthly?  What is the first thing you do when you get your paycheck?

Management 101

When it comes to managing your money the first thing that you need to do is don’t spend it.  Grabbing your paycheck on Friday, running to the bank and being at a high class restaurant at six isn’t a good money choice.  When managing your money you want to follow the following steps.

Step 1 – Pay your bills

You want to take your check and pay off the bills you have.  Even if it is paying off one bill you are that much closer to having free money.

Step 2 – Budget expenses for the week

What will you need out of your remaining check money to get you through till next payday?  Take that and put it aside.

Step 3 – Put 10% away

Out of what you have left put 10% away.  Put it in an envelope and lock it away.  Put it into a savings account or do something where you won’t / can’t touch it.

how does a home equity loan worka good money choice

Step 4 – Take the remaining and treat yourself

Take a few dollars and treat yourself to something small.  This can be getting your nails done, getting a drink at the bar with friends or whatever you like to do.

Step 5 – Find an investment

Investing your money into something will help it grow.  Don’t buy lottery tickets or something frivolous like that.  Find something that interests you and invest.  It can be buying something at a wholesale shop and flipping it online or maybe hiring someone to do a small task like writing a book you can sell.

When it comes to managing your money it takes little steps and changes in your behavior and attitude towards money.  Taking the first step and trying something new will motivate you to doing something more.