Managing Your Money All-in-One For Dummies

• Verlag: For Dummies
• Jahr: 2022
• ISBN:
  9781119883371
• Auflage: 2
• Thema: Développement personnel
• Thema: Finances personnelles

A hands-on, power-packed guide to managing all things money

Time and money. Those are the two most important assets you have, and smart people manage both of them wisely. Managing Your Money All-in-One For Dummies is your one-stop resource to turn to when you're ready to manage your money. It offers everything you need to confidently handle your finances. When you're ready to create a budget, pay down debt, and scale back your expenses, you'll find the support you need here. If you're eyeing the future, you'll find advice on improving your credit score, saving for college and retirement, and planning an estate. As if all of that isn't enough, this comprehensive book covers other financial topics such as buying insurance, investing in your 401(k), and so much more.

The authors of Managing Your Money All-in-One For Dummies explain how to handle your money in a way that encourages you to think and act positively, no matter what your financial situation looks like. And as you move toward financial freedom, you can come back to this book to get advice on topics that go beyond day-to-day money management, such as taking out a mortgage, investing online, and more.

• Get your financial life in order, whatever your stage of life
• Make a budget, manage your credit, and pay down your debt
• Demystify financial reports, online investing, and retirement plans
• Save for college and learn how to balance your saving and spending habits in any economy
• Navigate the new norm of online banking

Spend some time learning how to manage your money today. It'll be a wise investment of both of your most valuable assets.

Book 1

Taking Charge of Your Finances

Contents at a Glance

1. Chapter 1: Assessing Where You Are Financially
   1. Asking Some Preliminary Questions
   2. Evaluating Your Relationship with Money
   3. Checking Out Your Credit Reports
   4. Finding Out Your FICO Score
   5. Comparing Spending and Income
   6. Assessing Your Spending Habits
   7. Cataloging What You Own
   8. Adding Up What You Owe
2. Chapter 2: Improving Your Relationship with Money
   1. Working with Your Partner to Achieve Financial Goals
   2. Believing in Yourself
   3. Handling Setbacks
   4. Asking for Help
   5. Digging Out of Debt
   6. Budgeting for the Future
3. Chapter 3: Building and Sticking to a Budget
   1. Comparing Monthly Spending and Income
   2. Tackling a Budget Deficit
   3. Paying the Important Stuff If You Can’t Pay Everything
   4. Examining a Budget Surplus
   5. Finalizing and Sticking to Your Budget
4. Chapter 4: Cutting Spending and Boosting Income
   1. Finding Ways to Spend Less
   2. Bringing in More Bucks
5. Chapter 5: Cleaning Up Your Credit Reports
   1. Understanding the True Value of Good Credit
   2. Reviewing Your Reports for Problems
   3. Using the Law to Get Your Credit Record Clean and Keep It That Way
   4. Identifying and Disputing Inaccurate Information
   5. Adding Positive Information to Your Credit Report

Chapter 1

Assessing Where You Are Financially

IN THIS CHAPTER

Being honest with yourself about money

Finding out about credit reports and your FICO score

Comparing your spending to your income

Figuring out what you own and what you owe

You’ve bought this book, so you’re probably at least a little worried — maybe really worried — about your financial health. Perhaps your debts have you biting your nails, and you’re not sure what to do about them. You’re probably not reading this book for the fun of it! And you probably don’t have a good handle on the true state of your finances. After all, it’s human nature to try to avoid bad news.

We understand. Facing financial facts can be unsettling and even scary. When you know the state of your finances, it becomes hard to ignore the fact that improving your financial situation requires changing your lifestyle and making some big sacrifices. But no matter how scary it is, confronting the reality of your financial situation is essential — and the good news is that seeking out this book is a terrific first step to doing just that.

This chapter begins your next step: figuring out where you are so you know where you need to go. Until you come face-to-face with the actual facts of your finances, you may find it impossible to develop the resolve and self-discipline you need to implement your plan of action. That’s why this chapter begins with this series of fact-finding exercises to get you going.

The more bad news you get as you complete these exercises, the more critical it is that you get serious about dealing with your debts. The sooner you do that, the quicker and easier it will be to improve your finances and the less likely that your creditors will take some of your assets or that you’ll have to file for bankruptcy. So let’s get going!

Asking Some Preliminary Questions

You can get a rough sense of your debt problem by honestly answering the following questions. The more “yes” answers, the more work you have to do.

• Are you clueless about how much you owe your creditors?
• Over time, is a growing percentage of your household income going toward paying your debts?
• Do you ever pay your bills late because you don’t have enough money?
• Have you stopped paying some of your debts?
• Are you paying only the minimum due on some of your credit cards because you can’t afford to pay more?
• Are you using credit and/or credit card cash advances to help pay debts and/or your basic living expenses, such as groceries, rent, or utilities?
• Have you maxed out any of your credit cards, or have any of your cards been cancelled for nonpayment?
• Do you have little or nothing in savings?
• Have you borrowed money from friends or relatives to pay your bills?
• Have debt collectors begun calling you, and/or are you receiving threatening notices from some of your creditors?
• Are you having a hard time concentrating at work because you are worried about money?
• Are you losing sleep because of your finances?
• Have you and your spouse or partner begun to fight about money?
• Are you drinking more or using illegal drugs to try to cope with your money worries?
• 

  Are you an overspender? According to Debtors Anonymous, most compulsive spenders answer “yes” to at least 8 of 15 questions they pose at www.debtorsanonymoussb.org/takethetest.html.

Evaluating Your Relationship with Money

You may have the misconception that you are what you buy. You may believe on some level that the more you spend, the more successful and important you are. Developing that mindset is easy because all of us are constantly bombarded with messages that equate money and stuff with success. How often do you see ads promoting frugality, saving, or self-denial? If you’re struggling to keep up with the Joneses, you may need to reevaluate your friendships. The Joneses may be driving you straight to the poorhouse.

Recognizing emotional spending

Maybe you spend money for emotional reasons. For example, think about what you do when you feel sad or disappointed, or when you want to celebrate a success. Do you head to the mall? Do you click on your favorite retail website? Do you treat yourself to an expensive meal or enjoy a weekend getaway even though you really can’t afford it? If so, spending may have become a sort of addiction. Everyone likes to reward themselves from time to time, but doing so continually is a problem, and losing track of whether you can afford to treat yourself is a cause for real concern.

If emotional spending describes your behavior to a T, you need to get a handle on it fast. One option is to meet with a mental health professional; you may qualify for help from a low-cost/no-cost clinic in your area. Or get involved with Debtors Anonymous (www.debtorsanonymous.org or 781-453-2743). DA uses the time-tested methods of Alcoholics Anonymous to help people understand why they spend and to gain control over their spending.

Living for the moment

Maybe your problem is that you “live for today” a...