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Techniques to Balance Spending

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A friend tells you that he has a job that pays US $1,500 per month (after tax); however, he is spending US $1,900 per month and taking on more credit card debt to meet his monthly bills. In conversation he says, "I love to fix up my car, and I love purchasing new clothes. I need money for the things I want to do." He ends the conversation by saying, "My father always says that I need a budget, but I tell him that I am doing just fine without one."

Compose an e-mail to send to your friend explaining personal financial management techniques he can employ.

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Personal financial management techniques are explained.

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Dear (Name of Friend),

As one of my dearest friends, I want to share some points with you about personal financial management. I believe that no one, no matter how much his monthly income is, can afford to be complacent with their personal finances. Given our economic condition, more and more people, even dual income households, are filing for bankruptcy.

Fortunately, there are a lot of things we can do to manage our personal ...

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