I’ve learned that it is important for us to TELL our money where it should go…or else it will just hop out of our wallets or purses and evaporate into thin air. I DO NOT pretend to be an expert in finances (otherwise I would not be in debt in the first place)!
1. Keep a small notepad
Using this small notepad, write down EVERY item or service you spend money on. Continue to do this for at least a month. At the end of the month, take a look at everything you purchased and measure it against your income and any bills you may have had to pay for during the month. Writing down what you spend your money on will be an eye opener as to how much (or little) you waste.
2. Utilize an envelope system
Some may find that it is better for them to have tangible cash to work with and allocate towards expenses. Creating an envelope system may be beneficial to you if that is the case. You simply get your hands on a few envelopes and label them according to your needs and expenses. The key one to focus on is one for your own personal expenses…whatever cash you set aside for yourself in this envelope is your LIMIT! If you “cheat” this system, you will ultimately cheat yourself of the financial peace that you (and especially God) wants for you to have.
3. Have an accountability partner on a regular basis (daily or weekly is usually good)
Jesus, in Scripture, promises that He will never leave nor forsake His people. We should model this great example when it comes to getting, and staying, on the right track towards financial peace and freedom. Whether it be a spouse, parent, sibbling, or best friend, hook up with someone who you KNOW will check in on you to make sure you are making wise financial decisions and keeping in line with your budget. Share not only temptations, but also any victories that you have along the way.
4. Maintain a budget!
Whether you use extensive software packages such as Quicken or MS Money or just create a simple spreadsheet…CREATE A BUDGET!!! One Budget that is simple to maintain is called a “zero-balance” budget. What this means is that at the end of each month, your balance should turn out to be “zero”. This blog has partnered with an awesome ministry called BeatingDebt.org and they have a plethora or resources to help start you on your journey towards becoming debt free.
ADDENDUM
***Spending Plan (don’t leave home without one)***
A spending plan essentially dictates how one will actually SPEND the money that has been budgeted. It’s basically more itemized than a typical budget may be and it ultimately helps shape and fine tune a budget over time. Many thanks to Eric at BeatingDebt.org for sharing this nugget of information.
