My Money Five

Monday, January 09 at 03:25 PM
Category: Personal Finance

Making the most of your money starts with five building blocks for managing and growing your money  The My Money Five. Keep these five principles in mind as you make day-to-day decisions and plan your financial goals. 

THE FIVE PRINCIPLES

Earn
The earn principle is about more than the amount you are paid through work. This principle is about knowing the fine print and details about your paycheck, including deductions and withholdings. To put it another way: In order to make the most of what you earn, it helps to understand your pay and benefits. Check out* actions you can take and more hints and tips to earn.
 
Save and invest
Saving is a key principle. People who make a habit of saving regularly, even saving small amounts, are well on their way to success. It’s important to open a bank or credit union account so it will be simple and easy for you to save regularly. Then, use your savings to plan for life events and to be ready for unplanned or emergency needs. Check out* actions you can take and more hints and tips to save and invest.    

Protect
The protect principle means taking precautions about your financial situation. It stresses the importance of accumulating savings in case of an emergency, and buying insurance. Be vigilant about identity theft, and keep aware of your credit record and credit score. Check out* actions you can take and more hints and tips to protect yourself.

Spend
The fundamental concept of spend is: make a budget or a plan for using your money wisely. It’s helpful to set short-term and long-term financial goals and manage your money to meet them. Check out* actions you can take and more hints and tips about spending.

Borrow
Sometimes it’s necessary to borrow for major purchases like an education, a car, a house, or maybe even to meet unexpected expenses. Your ability to get a loan generally depends on your credit history, and that depends largely on your track record at repaying what you’ve borrowed in the past and paying your bills on time. So, be careful to keep your credit history strong. Talk to your lender to learn about other considerations that determine loan eligibility. Check out* actions you can take and more hints and tips about borrowing.

As you focus on these foundational money management elements, you’ll be better able to manage your money in both the short term and long term.
 
Information courtesy of Mymoney.gov*.

Links marked with * go to a third-party site not operated or endorsed by Arvest Bank, an FDIC-insured institution.

Tags: Financial Education, Investing, Lending and Financing, Savings
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