Managing Money- Trading Dollars for MarginThe goal in this phase is to get out of debt and to have margin to save. In the "Making Money" phase, money is your boss and you are the slave. The "Managing Money" phase puts you in a position to tell money where to go instead of vice versa. In this phase, you are no longer the slave, but in a wrestling match for power and control. If this skill is not learned then a person will fall into debt and debt is a harsh taskmaster.
Student loans, credit cards, car loans and a mortgage can kill the lifestyle of anyone. Managing money includes, budgeting, developing a rainy day fund, saving 10%, giving 10% which gives you margin to work on the next step. Dave Ramsey goes into depth into these principles to have "Financial Peace".