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4.0 WHAT IS THE RIGHT WAY TO HANDLE YOUR MONEY? - PERSONAL AND HOUSEHOLD FINANCE, HOW TO MANAGE YOUR BILLS

Should you have a checking account or use money orders? Should you have retirement checks electronically deposited automatically to your account? Should you just have one credit card or no credit cards?

What is the right way to handle your money? Surprisingly the answer is this: There is no one right method for everyone.

Money is very individual and very personal. Some people feel comfortable using money in one manner, others in another manner. What matters is that you pay your bills on time and that you keep a handle on your expenses so that you do not overspend.

Take some examples: Some people, especially seniors, like the feel of cash. They like to take their check to the bank, get cash and then put that cash into envelopes. These envelopes are marked with the name of the bill that must paid for such as the phone bill, electricity bill, and cable bill.

Another group pays everything with money-orders and the rest with cash. They feel uncomfortable with a checking account and are afraid that they will make a mathematical mistake and bounce a check. One bounced check will cost them much more than the cost of paying for money-orders.

Others like to use checks for everything and never use a credit card except in an emergency. They pay for everything with a check. They always carry an extra check or two with them just in case. They have a system for remembering to add these extra checks to their check stubs.

Others do not like to carry cash. If they carry cash, they will spend it. Instead they put everyday expenses on a credit card for convenience and then pay off the card every month.

You must decide. If you tend to overspend with a credit card (which many people do according to surveys) you might consider restricting your use of credit cards. You need to be honest about your weaknesses and how you manage the money that goes through your hands.

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