There is no denying that successfully managing money benefits you exponentially. Mismanaging money is equally as disastrous. Educating yourself and employing simple financial strategies consistently will increase your personal wealth and give you peace of mind. It is never too late to begin. You can start today using these nine basic principles.
Tithe Faithfully
Biblically ten percent of your income is given to support your church ministry when you tithe. A good steward acknowledges that God is the one who gives you life, talents, and abilities to earn an income. He opens the doors for opportunities to utilize them to the fullest benefit. Tithing aligns yourself with this truth and being obedient to the will of God. Financial wisdom is just one of the ways we are blessed for our obedience in this area. I don’t know a single person who couldn’t use God’s wisdom in their daily financial decisions. If you aren’t tithing, I encourage you to begin. Tithe money aids the spread of the gospel and meets many other needs. Find a ministry that you can get behind with your whole heart and begin. You change lives for the good when you tithe faithfully.
Pay Yourself Next
Most people dole out their paychecks bills first, entertainment next, and then save if there is any money leftover. Most run out of money before they run out of month turning to credit cards to stay afloat. This is mismanagement at its finest. This broken system can only be fixed by you. YOU are governing your financial choices. As CEO of your household, make an executive decision to pay yourself ten to twenty percent of your income right after tithing. You deserve it! Begin automatically allocating an amount directly to build your savings account as soon as your check hits the bank. Saving by paying yourself is not a popular mode of thinking but it has many benefits once mastered.
Create a Rainy Day Fund
This is also known as an emergency fund account. A good rule of thumb is to keep a minimal rainy day fund of $2,000.00. It can vary if you own a home, have a family, college students, or recurring health problems. The car breaks down, the A/C unit goes out and an unexpected hospital stay can happen. Grow a rainy day fund large enough to cover your annual deductible, a major car repair, or if a major home repair arises. Again the convenience of automatically deducting a certain amount from your weekly paycheck will easily secure success saving this fund. This can stabilize your home and family if a crisis does occur. Once you have accumulated the desired amount, the money can be appropriated in another direction, maybe for a new car or a vacation.
Take Responsibility
A Cash Manager oversees payments, income received, and is constantly evaluating the methods to assure that operational procedures are effective. Whether you consider yourself with this title or not, it is YOUR job to do the same with your income. If you neglect this area the consequences can be severe and last several years. Be a responsible adult who faces what needs to be addressed head-on. My husband and I made a commitment to spend at least an hour each week going over our finances to keep them on track. Couples should team up to do this together. If you are single just schedule a block of time to stay aware of expenditures and make a plan. Take responsibility for your own financial successes before they become failures. Own it! Reconfigure it! Do it!
Budget, Budget, Budget
Setting up a simple, easy to apply budget is the first step in getting a grip on your current financial status. There is an unlimited amount of budgeting tools to choose from to begin, but to be honest, an inexpensive spiral notebook and free calendar will work just as well. Tally up the funds coming in monthly, tally up the bills and expenses going out monthly, create the budget based on the information gathered. Make time to review your progress weekly. Don’t be afraid to ask for help if you are not sure how to devise a budget that works for you. An accountability partner is another asset in your efforts toward a successful budget.
Learn to Say NO to Yourself
Many people lack self-control, especially when it comes to spending money. Credit cards make it easy to spend what we do not actually have for frivolous purchases jeopardizing future financial stability. Don’t outspend your monthly cash intake! Live within your means! Avoid going into debt or not being able to save due to peer pressure or great marketing techniques making something irresistible to buy. Limit pricey treats like an overpriced cup of coffee to an occassional purchase after your savings goal for that week has been met. Keeping up with your perceived idea of what the Jones have will only wreck what you are trying to obtain. Say no to discretionary purchases more than you say yes. Self-discipline in this area will improve each time you practice saying no to yourself.
Owe No Man (Or Woman)
Romans 13:8 tells us to, “Owe no man anything, but to love one another.” This one scripture holds so much wisdom. If we owed no one, no banknote for the house, no lien on the car then such a huge financial burden would be lifted up off of us. Proverbs 22:7 states another truth like this, “The rich ruleth over the poor, and the borrower is servant to the lender.” The more you owe the more you have to serve in exchange for money to pay the bills. It is difficult to do otherwise when in debt. There is great freedom when you owe no one anything. It frees you to generously give to those ministries that are life-changing for good. Set a goal and make a plan to get out of debt today and owe no man or woman.
Create a Side Hustle
Find a little side adventure that you really enjoy that brings in a little extra cash to help hasten your savings goals. It might be something temporary or could quite possibly turn into the entrepreneurial opportunity of a lifetime. Find your passion and aim toward that. Even opting for a simple part-time job would bring in some monetary gain to get out of debt and boost your rainy day fund quicker than at the present rate. Creating a side hustle is a fantastic way to build additional wealth.
Educate Yourself
As a young adult, I did not know how to make wise financial decisions, what a credit report was, how interest accrued, or how to save. Not everyone is graced with parents who are financially articulate or stable. As an impulsive buyer, I tried to use good judgment but it depended largely on my mood. I would overspend, get into debt, pay the debt off, and get into debt again. It wasn’t until I started working at a credit union that I learned about finances and was able to manage my money better. I had the advantage of seeing how people with similar incomes managed their finances. Their strategies reflected consequences. Educate yourself, no matter what your age or station in life may be at the moment. Learn to save, set up a budget, and become debt-free. Educating yourself about your finances will bring great cause to celebrate!
