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The three most basic premises are managing personal cash flow, avoiding personal debt growth, and maintaining retirement savings rate. Creating a plan that accomplishes these three aspects of money management will, without doubt, help develop a path for future financial security.
Managing Cash Flow
Using the basic budgeting technique of tracking income and expenditures can reveal some telling facts and a number of ugly truths about an individuals spending habits. In order for this to show a true outcome, however, one must first be honest and truthful about what his/her spending habits are. According to Jean Lawrence, in the article, Debt Can Be Bad for Your Health, not only do many people have no awareness of how much money is spent in a month, but also most people have not been well educated on the basic paycheck stubs, salary and tax withholdings, and other miscellaneous withholdings...
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