Money Problems – an Easy Way to Get Started With Personal Finance
Money problems seem to be popular at the end of the year, probably because we are all treating a hangover associated with holiday spending. These problems may be useless, but they are still a great first step to getting started with personal finance.
If you’ve never heard of the money trial, this is essentially a goal with steps to help you save more money over the course of the year. Chief among these is the 52 week challenge, and there are a number of variations . As popular as these competitions are, not all are fans. When I once wrote about them in Get Rich Slow, some readers said that money problems make personal finances easier; they don’t focus on the big picture. Others say they are not ideal savings strategies: Paying automatically to yourself first is the best and most practical saving habit you can develop.
These are good arguments, but here’s why I think monetary issues are still good for personal finances:
Problems turn to newbie money : For many people, personal finance is daunting. Most don’t know where to start, so they don’t start at all. But all you have to do is take the first step . If you don’t know how to take this first step, the challenge is an easy and affordable way to plunge into the world of personal finance.
Tasks are fun : let’s face it, personal finance isn’t the most exciting topic. Making it a game can be a motivating factor. In fact, you can count on managing your money when it seems like a problem and not a chore.
Tasks focus on control: yes, auto-saver is a smart and practical money-saving strategy . But the problems of economy are designed to give you a practical sense of control; you get behind the wheel and make it possible. Automating everything is great, but sometimes you need to sort out your money. This gives you a better idea of what is going on with your finances (and possibly what is going wrong with them). A sense of control is a huge part of successful money management .
Finally, money problems are great learning opportunities. It’s hard to deal with a problem without learning a thing or two about your habits. If you’d like to get started, here are a few more of these problems and techniques we’ve covered:
While there is definitely more to personal finance than these issues, it is still a great introduction to money management.