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Money Management: Prepare Yourself For the Pitfalls

BY Rachel | 24 September, 2016 | no comments

When it comes to money management, you want to think in two directions. One direction is going to be up – how to make money, save money, create value, and progress! And the other direction is down – you want to know how to manage money when the chips are scattered – bankruptcy, divorce, and complicated taxes are the nemesis to many.

And it’s those pitfalls of monetary management that will often be the undoing of an otherwise streetwise financial observer. Add to the downward scope of management the concept of catastrophes, and you’ve got a recipe for disaster. However, among all of those situations, a simple foray into the world of accounting can help you keep yourself afloat as well.


Even the best money managers can run into bankruptcy situations. Most often this is going to be because you attempted to start a business and it didn’t pan out over the course of a few years. This isn’t the end of the world though! A good lawyer and a solid understanding of business law can get you back on your feet in no time, and prepare you to fight again to take a second round of the fight to the entrepreneurial spirit. So call your Harrisburg bankruptcy lawyer to help you deal with the financial situation.


A divorce can be a real drain on financial resources, and thus should be managed properly. Even though it can potentially be an extremely emotional time in a person’s life, being logical about things like splitting up property, dividing bank accounts, and choosing the right numbers for alimony and other types of payments is absolutely of vital importance. Even in cases where people are trying to be bitter or revengeful, there are ways to keep a logical lid on the money problem during domestic disputes.

Complicated Taxes

Depending on your forms of income, doing your business taxes can be incredibly complicated, and a few missteps can not only land you in hot water financially, you can potentially be jailed as well. So if you want to manage your money responsibly, in many cases it’s better to hire an accountant that try to do them on your own.

Work Your Way Through an Accounting Class

To help you manage your money in a way that will improve your upward movement, and limit your downward movement in the financial food chain, it always makes sense to work your way through an accounting class. This doesn’t necessarily have to be at a college level, but a general understanding of ledgers will vastly improve your ability to manage money effectively.

Think In Advance About Catastrophes

Do you know how to manage money in the event of a catastrophe? What if your home floods? What if there’s a death in the family? Understand insurance, specifically, is going to ensure that money moves in the proper direction in the event that an accident occurs that incurs great financial burdens.