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Key to success Income Saving Spending Investing Donating Spending plan Resources The key to success People often think that to manage money well, you must have a lot of money. This is a myth. You can manage your money well no matter how much you have. The secret to success is not having a lot of money, it’s using what you have wisely. The key to managing money can be stated in a simple phrase: “live below your means.” Your means is the income that you have. This includes money you receive from all sources. Living “below” your means involves spending less than you make. If you do so, you’ll have money left over to save. Budgets, or spending plans, are tools that people use to help them manage their finances. They list how much money you have and how you plan to use it. Some people think of plans as putting limits on what they can spend. People may have trouble using spending plans if they feel the plans restrict them. Another approach is to see your spending plan as a road map. It helps you define how you’ll use your money. At the end of this section, you’ll have a chance to develop your own spending plan. First, though, let’s look at the parts of a spending plan and see why they’re important. INSTRUCTIONS | YOUR MONEY | YOUR COMMUNITY | NONPROFIT | FAMILY GIVING | RESOURCES PRINTER FRIENDLY | TELL A FRIEND ©2006 Learning to Give