The first time I picked up T. Harv Eker's Secret's of the Millionaire Mind I read the quote above and caught myself saying, "I know that!" Trouble was I didn't really know that. I just thought I did. I had been managing my money for years but not in the way that Harv explains in his book. The money management system that Harv teaches is called the JARS system. Trisha and I have been using the JARS for over a year now.
So what is emotional management? Well, emotions are an extremely strong and powerful force. Overcoming and overpowering them is not easy. Very few people succeed in such attempts viz. the sants and the mahatmas. Since we ordinary mortals can't suppress or conquer them, we have to simply make sure that our financial decisions become, as far as possible, emotion-free.
At age 6 to 10, kids usually know how to identify the different kinds of coins and bills. Also, they should already have a clear picture of how much change they get when making a purchase.
Similarly, money is merely a medium of management. What, here on surface, looks like you are managing money (whether it is investing, borrowing, spending, tax planning, insuring, etc.) is, in reality....managing EMOTIONS.
Be honest with yourself when distinguishing between needs and wants. This is critical in the budget building process. Utilities like electricity and natural gas are needs, but do you really need every single movie channel out there in your cable subscription?
First, your bank account can't predict variances in income. Many people who are self-employed or paid on a commission basis have incomes that vary widely from month-to-month. My first year as a tax accountant, I earned my entire annual income in the first four months of that year. I had to manage my money well for the remaining eight months of the year, or else November and December became very lean months.
The World Wide Web is not a toy. Rather, the Internet is a source of communication that can make or break us. Any time management scheme requires the individual (s) to divert a plan to spare time and save money while reaching for goals.