Money Management in the Improving Economy

: Reese Baker & Associates

  Filed under: Money Management

debt balanceSince roughly 2008, the U.S. economy has been struggling in a big way. There have been mild economic booms and crashes throughout the past 6 years, but on the whole, unemployment has been high, job availability has been low, and poverty levels have been on the rise. Fortunately, it appears things are beginning to look up. Unemployment is back down to near-pre-2008 levels, the housing market is on the rise, and other economic signs point to growth. As this trend hopefully continues, here are a few money management tips:

  1. Stick to your budget. You shouldn’t abandon good financial practice just because things are looking up. If you’ve been living on a budget for the past few years, keep to that budget until you are completely financially comfortable. All the money you saved through frugal living could be lost in a few moments of folly.
  1. Make financial planning a priority. If you are married or share finances with a significant other, make sure you both agree on major financial decisions. When you plan your budget, check that it suits both of your needs, and don’t let disagreements over finances drive you apart. Work together to come up with the best financial plan for the two of you.
  1. Stock up on grocery staples. When you have coupons for items like rice or canned goods, which will not go bad for several months, make sure you use them. Part of living frugally is recognizing a good deal, and that requires knowing what foods you can buy to get the most value for your money.