Good and Bad Money Management.

.
Good and bad

money
management.
.Buyer’s remorse.
Presented By:
. Zulima Berrio.
. Reynaldo Figueroa.
. Gabriela Orozco.
GOOD AND BAD MONEY MANAGEMENT
There are different strategies or

ways to manage money.
Good strategies
Vocabulary:
- I save regularly
- I keep track of my expenses
- I live within my means
- I always pay my credit bills in full
Bad strategies
Vocabulary:
- I don’t know when my money goes

- I live paycheck to paycheck
- I am drowning in debt
- I live beyond my means
Ways to Manage Your Money Better.
- Being good with money is about more than
just making ends meet. Great math skills aren't
really necessary - you just need to know basic
addition and subtraction.
- How you spend your money impacts your
credit score and the amount of debt you end up
carrying. If you’re struggling with money
management issues such a living paycheck to
paycheck despite making more than enough
money, then here are some tips to improve your
financial habits.
How to Manage Your Money Better.
1. Have a Budget:
Many people don’t budget because they don’t
want to go through what they think will be a
boring process of listing out expenses, adding
up numbers, and making sure everything lines
up.
If you’re bad with money, you don’t have room
for excuses with budgeting.
What is a Budget?
“…a plan for the coordination of resources and

expenditures”
Merriam-Webster
A budget is a plan for managing your

money in a way that best meets your
personal needs and wants.
Why is a Budget
Necessary?
- Identifies and defines your financial goals
- Manages your money
- Directs your money flow
- Increase your savings
- Avoids spending money unnecessarily
- Achieves your personal goals

Budgeting is Effective
Money Management
- Effective money management is planning how
to get the most from your money.
- Good money managers keep track of where

their money goes so that they can make it go
farther.
- Effective money management includes:

. Developing personal financial goals
. Organizing personal financial records
. Creating a personal monthly budget
. Evaluating personal financial health
How do I Create a Budget?
Creating a budget begins with a clear,
accurate, and well-thought-out plan. This
will allow you to be able to:
1. Adjust plans, activities, and spending as

needed
2. Spend money cost-effectively
3. Reach the specific goals you have set
4. Strengthen internal control system
What’s in a Budget?
INCOME EXPENSES
Simply any money Money that you

earned or spend, this
contributed to includes anything
your household you purchase. This
from either includes both
personal finances planned and
or a business. unexpected
expenses.
2. Give Yourself a Limit for
Unbudgeted Spending:
- A critical part of your budget is the net income
or the amount of money left after you subtract
your expenses from your income.
- If you have any money left over, you can use it
for fun and entertainment, but only up to a
certain amount. You can’t go crazy with this
money, especially if it’s not a lot and it has to last
the entire month.
3. Make Sure You’re
Paying the Best Prices:
- You can make the most of your money
comparison shopping, ensuring that you’re
paying the lowest prices for products and
services.
- Look for discounts, coupons, and cheaper

alternatives whenever you can.
4. Limit Your Credit Card
Purchases:
- Credit cards are a bad spender's worst enemy.
When you run out of cash, you simply turn to
your credit cards without considering whether
you can afford to pay the balance.
- Resist the urge to use your credit cards for

purchases you can’t afford, especially on
items you don’t really need.
How To Get Into the Habit
of Saving More Money.
- Most people want to save more money, but
without a solid plan and good habits, it’s easy
to fall short of your financial goals.
- Life interferes and money slips through the
cracks. Before you know it, the end of the
month has arrived, and you’re no closer to
saving than when you started.
1. Celebrate the Small
Savings.
- When you’re just starting out with saving, it’s
easy to discount your efforts. Even if you’re
only able to set aside $X, focus on the fact that
you’re saving something.
- Give yourself permission to start slow; if you

save $5 every week, you’ll have $260 at the end
of the year. As long as you’re moving in the right
direction, you’re focused on what really matters:
establishing the habit of saving.
2. Set Up Automatic
Transfers.
- Setting up automatic transfers from your

checking account to your savings account can
get you started saving money without thinking
about it - assuming you have a budget in place
and know your expenses and savings goals.
3. Savings Account Tips
and Tricks
- For some people, the best way to save is to have
short- and long-term goals. Ideally, you’ll have 3–
6 months' worth of living expenses set aside for
emergencies.
- Resist the temptation to dip into your
emergency fund, and treat your savings accounts
as off-limits. You can budget part of your income
into short-term savings for specific goals like a
vacation and long-term savings for big-picture
items, like a down payment on a new home.
Buyer’s Remorse Definition
Is an emotional condition whereby

a person feels regret after a
purchase. It is also known as “ Post
purchase dissonance”.
* Buyer Remorse is frequently
associated with the purchase of
higher cost items.
Buyer’s Remorse
- Also Buyer’s remorse refers to

the feeling a person has after
buying a product and seeing it
wasn’t what they expected.
- As the following ones:
“It cost so much to maintain”
“It takes up so much room”
“It’s so hard to put together”
“It’s so hard to operate”
“It just sits around collecting dust”
Without a budget or putting your needs
and wants in priority the money is gone
before you know it. Your “flexible friend”
or credit card is so easy to use. You don’t
keep a record, ignore the statements and
bills that come through the door and
slowly but surely you are creeping into
debt. Without any planning it’s easy to be
tempted into buying what you can’t
afford.
There is a better way. Start with a planned
budget and keep regular checks on how
things are going. It helps to know what you
have coming, what are essentials and what
little extras you can afford. Stick to your
budget, sorting out your priorities. Make
sure you know the difference between what
you need and what you want but isn’t
essential.
• Who would like to tell us how you
manage your money?
• What strategy do you apply or would

you like to apply?
And that’s it.
Thank you so
much!

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Good and bad

There are different strategies or

- I don’t know when my money goes

“…a plan for the coordination of resources and

A budget is a plan for managing your

- Manages your money

- Directs your money flow

- Increase your savings

- Avoids spending money unnecessarily

- Achieves your personal goals

- Good money managers keep track of where

- Effective money management includes:

1. Adjust plans, activities, and spending as

Simply any money Money that you

- Look for discounts, coupons, and cheaper

- Resist the urge to use your credit cards for

- Give yourself permission to start slow; if you

- Setting up automatic transfers from your

Is an emotional condition whereby

- Also Buyer’s remorse refers to

• What strategy do you apply or would

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