Managing Finances for a Better Future Essay

In American society, we are encouraged to save money for a better future. However, in my life I have encountered problems with managing my personal finances. In the past, I spent my money irresponsibly. Despite making a decent salary, it was a challenge trying to maintain my financial responsibilities and not something I was very concerned about. I felt as though I was living paycheck to paycheck, when the reality was I simply did a poor job of managing my funds. Now that I have grown up and have a son, my expenses have increased tremendously. Although he is my biggest joy, having to take care of him has worsened my inability to manage and save money properly. When I should be saving money for his college education, instead I spent $500 on toys for Christmas. Therefore, learning how to effectively manage my finances is vitally important in order to secure a healthy and rewarding future for myself and my son. Information to Resolve My Daily Problem As I consider how to resolve my constant problem of saving money, I have identified these information sources as possible resources: 1.  I would use my 401(k) investment catalog to discover more information about how to invest money into different stocks and bonds. 2. I would contact Diana Marrero-Pinto, Director of Housing at the Lorain County Community Action Agency, Inc. to register for the Budgeting Bootcamp seminar. 3. I would search the Internet for reliable resources on how to save money in a bad economy. I would look for such resources in the following manner. I would contact my 401(k) representative to schedule a meeting to discuss my account and possible investments. I would contact Diana Marrero-Pinto to discuss the Budgeting Bootcamp seminar and other training opportunities. I would visit the University of Phoenix Library for articles and book excerpts on budgeting and saving money. Process for Evaluating My Resources In order to evaluate the information that I would gather to resolve my problem, I would consider the source of that information. If I am interviewing professionals, I would ensure that they have a background in finance or experience working with people on how to manage their personal finances. If I am looking at Internet resources, I would be cautious nreliable websites that contain non-factual information. I believe, the Wall Street Journal website has reliable information since it is a nationally renowned newspaper in the United States. Another really reliable resource would be the University of Phoenix Library, because college officials ensure the information is reliable for students. The articles and books available on the University of Phoenix Library allow thousands of students to feel confident about the reliability and accuracy of the resources retrieved from the website. Ways to Use This Information to Resolve the Problem The process of problem-solving includes the ability to utilize self-knowledge to figure out solutions to a problem (Carter, Bishop, & Kravits, 2007). I believe there are four stages in problem-solving: analyzing, synthesizing, applying, and evaluating. First, analyze the problem or issue by identifying the possible causes for why the problem occurred. Next, synthesize all the data that explains the problem and brainstorm possible solutions. According to Carter, Bishop, and Kravits (2007), â€Å"When you are brainstorming ideas, don’t get hooked on finding the one right answer. Questions may have many â€Å"’right answers’- or many answers that have degrees for usefulness† (para. 52). From these possible solutions create a plan of action, outlining important goals with timeframes for completion. Once the goals and timeframes are established, I will begin to apply the goals set forth in order to solve my problem. Later, I will evaluate the process it took to solve my problem, and decide if the process was dependable. This will help me to make better decisions in the future.