APMacro: Millionaire Game

Who-Wants-To-Be-A-Millionaire-Lite_5     Lots of seemingly smart people are clueless about where they stand financially. To manage your money well, you need to know some basic information, use some common sense, and then take action.

First, get a grip on your spending. Set up a budget. Make a list of your income and expenses. Then subtract your expenses from your income. If you have any surplus cash, plan how you will use it. Do this each month. Maybe you will learn that now is the time to get started investing in a mutual fund or stock account.

Second, get to know the various services offered by financial institutions in your community. Checking accounts are among the most common financial services people use, but there are many others including ATMs, online banking, direct deposits, savings accounts, credit cards, installment loans, student loans, retirement accounts, and certificates of deposit. Among the many types of financial institutions, four important ones are commercial banks, savings and loans, credit unions and brokerage firms. Open an account now at one or more financial institutions. Start with checking and savings accounts, but don’t wait long to start other, more rewarding savings programs. Becoming wealthy is within your grasp. Starting to save when you are young is a good idea.

Finally, learn how to protect yourself against risk. All choices involve risk, but some risks are greater than others. Buying insurance is a common way to reduce risk. There are many kinds of insurance to consider including auto, health, renter’s, homeowner’s, life, and disability. The type and amount of insurance you need will change as you get older and the value of your assets increases.

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