Money is that one thing that makes the world go round. It’s also a huge pain source for most people. It never seems like we have enough. Or things happen that set us back financially. It seems like we are most conscious of our money matters when the New Year begins. Maybe it is because the bills for what we spent for Christmas start coming in!
Today I am sharing with you 7 tips to help you get your money situation under control and finally feel good about money!
1.) Regular Budget/Dream Budget – First I would suggest making 2 budgets. Your regular budget for the month of everything you need to do such as bills you need to pay, food, gas for your car, etc. Then in a separate document you are going to create your dream budget. Think of all the things you want to do or wish you had. Look up the cost of those things. Now budget when you would like them by and how much money you would need to get it by that date. Prioritize these and then open a savings account. Any time you have extra money come in (gifts, bonus checks etc.) put that money in the dream budget savings account and soon you will be on your way to not only getting through each month, but also reaching your dreams!
2.) Plan for Retirement – When do you want to retire? If you have an age in mind, sit down and figure out your cost of living (be sure to add in inflation for the time you will be retiring) and see how much money you will need monthly to do that. Start putting whatever you can toward your retirement. If you are starting late you will need to put more toward it than if you are starting in your early twenties.
3.) Anticipate major costs – We all have these things come up in our life that we didn’t expect or that we knew were coming but we didn’t plan for. Start to figure out what you need to set aside each month for major costs such as taxes, home repairs, car repairs etc.
4.) Budget salary/save commissions – If you are in a job where you have a salary and commissions, plan your budget based on your salary. Then take your commissions and put them in a separate savings account. That way if you need to you can transfer money to your main account but you also have a savings for the times that you have an unexpected cost, or you would like to travel or whatever it is that you have in mind.
5.) Envelope system – For some people an envelope system works best. Instead of putting things on your credit or debit card, you have an envelope for each category (food, gas, entertainment, etc.) and you put a certain amount of money in each envelope. When the money runs out you have hit your budget for the month. This works really well for people that don’t really keep track of what they are spending each month on things because they are just putting it on a card. It also saves you debt of paying credit cards later.
6.) Insurance – There are some insurances that are super important to make sure you have in your budget. These are Rental/Home owners insurance, car insurance, health insurance and life insurance. While yes, you are paying a certain amount each month and things may not happen, if you don’t have these in place and something does happen you could end up bankrupt.
7.) Pay off Debt – If you ever sit down and look at what you pay in interest on your credit cards or late fees if you miss a payment or forget to send something out in time and add it up I bet you would have money towards one of your dreams that we discussed in the first tip. This is like throwing money in the garbage. Look at what you need to do to pay down debt, raise your credit score and feel good about money again.
I hope you enjoyed these tips and that they have helped you in some way. If you would like to chat about how I can help you go further with these tips just reach out to set up a time!
A New Year’s Blessing…
Lord, we ask for your wisdom, for your strength and power to be constantly present within us. We pray you would make us strong and courageous for the road ahead. Give us ability beyond what we feel able, let your gifts flow freely through us, so that you would be honored by our lives, and others would be drawn to you. In Jesus’ Name. Amen.