Money Management Is as Easy as "1, 2, 3”

Published April 29, 2010

In a world where life moves so fast, it’s good to have some help along the way. All ofus have competing priorities – spouse, children, job, church, parents, school, relatives, friends, significant other, etc. These competing priorities often cause avery important topic to take a back seat. This very important topic I am referring to is money management.


Money management is a topic that should rank very high on our list of top priorities. Money is attached to everything so it is a good idea to have a grasp on how to make it, how to manage it, and how to protect it. These principles should also be taught to our children. The book, “Money Management: Easy as 1, 2, 3,” was written with you in mind. It is a quick read, yet very impactful. The book is a little over 100 pages of useful information. It was written to get to the point quickly and leave readers with understandable tips they can relate to and implement in their daily lives. Let’s take a brief journey through the book.

The book truly is “Easy as 1, 2, 3.” There are three chapters. The first chapter discusses your M.I.M.O. (Money In Money Out) and living on a budget. Chapter Two explains why it is critical for you to make sure you put your money in the right places based on your need. Chapter Three makes it very clear why you need to have some P.A.L.s in your life.


Chapter One. The first step to getting a grasp on your money is to get a grasp on your cash flow. I call this your M.I.M.O. (Money In Money Out). You must write down all of your income and all of your expenses so you’ll know what you’re working with – a deficit (M.O. > M.I.) or a surplus (M.I. > M.O.). I suggest using a cash flow/budget worksheet. You should be very thorough so you have an accurate picture of your cash flow. Then, you should work toward eliminating wasteful spending. The objective is to increase M.I. while decreasing M.O.

Chapter Two. It is very important that you put your money in the right places based on what you want your money to do for you. If you are not well versed in various financial products, you may need to consult a financial advisor. Make sure you answer these three questions before doing anything with your money: 1) What is the purpose of this money? 2) What is my time horizon (e.g. how long before I need to use the money)? 3) What is my risk tolerance (e.g. how conservative or aggressive do I want to be with this money)? Answering these questions correctly can make a difference in everything from your rate of return to the amount you pay in taxes.

Chapter Three. If you have anything of value, you should have some P.A.L.s for protection. One mishap can drain all of your savings so it’s a good idea to have some P.AL.s standing by to assist when those times come. The P.A.L.s I’m referring to Protect Assets and Lifestyles. Examples include emergency savings, health insurance, disability insurance, etc. These P.A.L.s jump into action when a mishap occurs. The book goes into more details on the above topics and also delves into other principles that help people manage their money.

“Money Management: Easy 1, 2, 3” as received impressive reviews from people in different walks of life. Go www.liveandsave.com for more information or to order your copy today.

Written by <P>by Ernest Burley, Jr., Special to BET.com </P>

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