Managing money is not something that a person is born with and some people have to learn this the hard way. Here are some of the advice on money management by entrepreneurs who have had more experience with managing money than most other people.
- Kathryn Petralia, Kabbage co-founder and president
The entrepreneur learned to value a single dollar at a very young age. It is important to learn the value of managing well money and resources as early as possible. Petralia opened an account for her 12-year-old to help it be responsible about the way that it spends money. This teaches young adults to save money and control expenses so that they can satisfy all their wants and needs.
- Jon Stein, Betterment founder and CEO
Jon Stein recommends budgeting annually backward. Many people begin their annual budget but soon quit on it. The old way of budgeting focuses on the spendings instead of the savings. Jon Stein has found that it works much better the opposite way. When one focuses on the goals and uses methods to save money for the goals, the budget naturally falls into place.
- Shivani Siroya, Tala founder and CEO
Shivani Siroya takes a more unusual approach to money managing. While most of the advice for personal finances concern savings, investments, and credit capacity, most forget to take into account the emotional well-being and security of individuals. People are much more controlling with their finances and make better spending decisions when they are happy. Happiness makes people more optimistic about the future and more relaxed. These factors play an important role in succeeding in all areas of their lives including the financial one.
- Tina Hay, Napkin Finance founder and CEO
Tina Hay still uses paper statement for her credit cards. For some, having a paper written out of all their statements line per line is much more demanding of attention than electronic statements that often can get overlooked amongst other electronic documents.
- Vlad Tenev, Robinhood co-founder and CEO
A lot can be learned about the value of money when participating in the stock market. Vlad Tenev began his involvement with it during his early teens. The observation of daily market swings and spinoffs has greatly contributed to his understanding of the nature of money.