When it comes to money, “The Mint makes it first, it is up to you to make it last.” Of course, in today’s challenging economy, feeling like you have a good handle on your finances might seem like a pipe dream.
But it is not. In fact, you have more power than you realize when it comes to giving your financial health a much-needed boost.
You just have to know where to start so you can manage your money successfully and keep your fiscal matters in tip-top shape.
Many people are going through difficult times with regards to their financial situation.
They owe more than their current financial standing, house rent and power holding bills are piled high, and there is little to no hope for their financial future.
Sounds like what you are going through? Well, there are some simple tips you can follow today to turn all of that around.
You might think that I am about to tell you to get a budget. While that is a great step like I have already discussed on this page before; budgets is certainly needed for financial success, they are not the only thing needed.
The principles I am going to ask you to participate in are principles that require an attitude adjustment and sheer determination. Let us get started.
Tip Number 1: Seek financial accountability and stability.
If you are married, you have the potential to become very strong and stable financially. Consider the potential benefits: The opportunity for two incomes.
If one person loses his/her job, at least the other has a job! Two strands are stronger than one. Each partner keeps another’s spending in check. Even just knowing that a purchase might not please your spouse leads you to spend less.
This is a great opportunity for accountability.
Each partner encourages the other to do well in work. I do not know about you, but sometimes I get burnt out. My wife is always there to help me through those difficult times. If you are single, you are going to have to find another way to achieve financial accountability and stability.
Here are a few tips: Find someone who is a close friend who will hold you accountable on a regular basis (for example, who will look over your budget every week or month).
Build up a larger emergency fund to fight against life’s unexpected events. Anything can happen. If you lose your job, will you have enough money to last you until you find another job?
Share your long term financial goals with your friends and family. The simple act of sharing your goals with friends and family will help keep you accountable. It is a great motivating factor that pushes you to live up to what you said.
When you are conscious of how much you have to spend each month on both necessities and small indulgences, you won’t feel the uneasiness that comes with the unknown.
Tip 2: Systematically eliminate your debt.
I am convinced that debt crushes one’s ability to prosper. It keeps you down in a number of ways: You are paying interest. Whether it is your house rent, car note, medical expenses, small business loan, taxes, student loans or any number of other lines of credit, you may feel like you are drowning in debt.
In other words, you are spending money to spend money. This can sap your wallet in no time, and keeps you financially poor.
You are betting that you will have income in the future to pay off what you have already spent money on. But what if you do not have as high of an income in the future? Well, you will default on your loans and might go into bankruptcy.
It keeps your stress level high because you have to think about your mountain of debt. Debt is very burdensome.
But sometimes we do not realize how much stress it is causing us until we get rid of the debt.
You can get rid of your debt in a number of ways, but I recommend using the debt snowball technique.
That is where you pay off your smallest debts first moving up to your largest debts. You might ask why you would want to do that when you could pay off the highest interest rates first.
Paying off smaller debts first motivates you to keep going, and the difference you will save paying off higher interest rates first typically is not very substantial.
Controlling expenses increases financial security. Income is a lot like a closet space, no matter how much of it you have, it is never enough. Ruthlessly manage your expenses and maximize discretionary cash flow to improve your financial freedom.
Tip 3: Give money away often and Surrender your finances to God.
To get, you must give. To be secure, you must surrender. To live, you must die to yourself. These themes are repeated time and time again in the Bible, and they are true for our financial health as well.
If you are not giving to your local church, today is the day to start. Giving money to God and letting God manage the rest through you is the best financial decision you can make.
Give money away often! Those who are generous with their money typically find that the more they give, the more they seem to have. It also helps you keep things in perspective. Money is important, but sharing with others is more important and more rewarding.
Taking on the burden of giving feels more like losing a burden. Control when lost can help you trust God with your financial situation. Be responsible with your money and manage it God’s way.
Finally, work to reduce your debt, build a budget, save money, invest wisely and plan for retirement. Enjoying true financial health involves more than pulling in a higher income and saving your pennies. Long-lasting wealth depends a great deal on how wisely you invest the money you do have and make sure you choose the right investments for your needs.
If you follow these principles, you will receive a boost to your financial health. Try them out, and I am sure you will be happy with what you see!
See you next week. Remain blessed.