Knowing how to manage your money is an important skill. Managing your money is not the whole picture. To have a complete description and confidence in your financial future, you need both to manage and master your finances. Mastering your money takes planning ahead of your income and setting goals, so you are plotting a course before the money arrives. Managing is directing and controlling the resource you already have.
Managing Your Money Matters
Managing is defined as to oversee or have supervisory control. When you start a money management routine or system, you start with what you have, the balance in your accounts. Then you plan the direction those dollars will go. A budget is a standard management tool. It can be a simple paper list or an Excel spreadsheet of expenses in order of due dates. Anything that allows you to track where your money needs to go by priority level. Budgeting is an ongoing routine you will need to monitor and execute. There are many online budgeting apps to help you start managing your money. Make sure the app can do everything you need it to before you download. Some apps require you to connect your bank accounts and credit cards so if you are not interested in that find an offline program.
Mastery-Proactivity in Action
The other part of financial fitness is learning to be proactive and plan. This process involves setting goals for you and your future. Goals can include building up a savings account or starting a college education fund. You can plan for home improvement and beautification projects. Anticipating any increase or windfall in your income will help to make every dollar count. No longer will you wonder where your money went; you will have confidence that you are the expert in your financial future. No one out there will work harder to fight for your future than you, so think about how you want your life to run and plan accordingly.
Putting It All Together
So financial fitness is not only the routine maintenance of managing the income and expenses. It is also taking the lead in your life, setting out those goals and projects that you want to accomplish and making plans to achieve them. Asking someone you trust and respect to look over what you have put together can be a great resource to make sure you have all the components to your plan.
Take an hour this week and do a budget checkup on yourself.
Terese Ferrara is a long-time resident of the Bay Area and has been a partner with the Goss | Ferrara Real Estate Team. She and her husband raised their two daughters in San Jose, where she successfully continues to build her real estate career.
After earning a bachelor’s degree from San Jose State University, she went on to teach in the San Jose Unified School District for 9 years. Transitioning to real estate was a logical choice, utilizing her patient demeanor to educate all levels of buyers and sellers. Knowledge and experience demonstrate her vested interest in delivering the highest level of care and professionalism to every client. She consistently strives to exceed her client’s expectations throughout the entire real estate transaction and remains a trusted advisor long after each close.
As a board member on KW Bay Area Estates’ Associate Leadership Council (ALC), she aids in support of culture and professional development strategies for over 180 associates. Terese is also a Director for the Santa Clara County Association of Realtors Foundation, which supports community service initiatives in Silicon Valley.
Terese is the consummate real estate professional dedicated to providing unparalleled service to her clients through ongoing training and education, keeping her on top of the dynamic market and latest real estate trends. Her high-touch approach coupled with honesty and integrity support her commitment to her client’s real estate needs.
