Let’s Talk Numbers
On this first edition of Finance Friday, we are going back to the basics. Many people today live in constant stress and anxiety over their cash flow, but it doesn’t have to be this way. The Lord has called us to be good stewards over the resources He provides, which requires work and planning.
“A wise man thinks ahead; a fool doesn’t and even brags about it!” -Proverbs 13:16
“The plans of the diligent lead to profit as surely as haste leads to poverty.” -Proverbs 21:5
“Suppose one of you wants to build a tower. Won’t you first sit down and estimate the cost to see if you have enough money to complete it?” -Luke 14:28
Some of you may have been surprised to realize the Bible has anything to say about saving, planning and preparing. Actually, scripture is filled with information regarding the subject of finances, maybe because God knew so many of us would struggle in this area.
One of the best and easiest tools in your arsenal of weapons to defeat money mismanagement is a budget. Now I know, some of you will hear this word and immediately have negative thoughts or the feeling of being restricted. Trust me when I say, a budget is not binding, it is freeing. My husband and I were on the pay check to pay check train for many years, so I speak from experience when I say disembarking from that ride, starts with a plan. It is truly that simple. You schedule most everything else in your life, why wouldn’t you do the same with your cash flow?
Beginning this journey can feel intimidating, so let’s explore some options to make the process smooth and practical.
If you are married, ask your significant other to work with you to create money goals for the household. This should not be a solo event, unless you live solo. One of the top reasons for divorce these days- money issues. Working as a team is vital not only for success in your finances, but will also help develop a less stressful marital relationship in the process. I love a good “two for one” deal!
Decide what type of system you want to use to track your numbers. Are you old school, preferring pen and paper? Where are my number nerds at who love spreadsheets? Downloading an app for the convenience and accessibility on the go could be another option for many. It doesn’t matter which path you choose to utilize, just as long as you select something that works best for everyone in your household.
Set aside intentional time in your schedule to go over your funds. In my family, we have a budget meeting at the beginning of each month; however, if you are just starting out, you may find it easier to sit down with each pay date and run through all the numbers more often until you have a well established process.
Step One- List out all your normal, monthly reoccurring bills. This would include items such as:
Rent/Mortgage payment
Groceries
Utilities
Car payment
Insurances
Step Two- Review your net income for the previous month. Even if you are an hourly worker, this should give you a general idea of what your normal, monthly bring home will be for you to utilize in your planning.
Step Three- Start plugging away at the numbers. As you plan, look at your calendar- are there any birthdays coming up to account for? School functions you know the kids will need cash to attend? Review and plan for every possible cost that can occur in your home for that month. Make sure to leave room, if possible, for those unexpected budget items that always manage to pop up out of nowhere and throw you for a loop before the next pay check comes. Even if you just put back an extra $50.00, it will help ease the stress from those little surprises.
Step Four- Change your spending habits to fit what you see on the paper. This is critical and when implemented, you will begin to see real gains with your finances. Please believe me when I tell you we have been there! That scary feeling when you’ve got a much bigger total going out, than what you have coming in. Allow that feeling to keep you motivated. Pick up a side hustle to give yourself some breathing room. If you know you barely have enough cash to pay all your bills, you shouldn’t be rolling through Starbucks on your way to work. Make your coffee at home, throw it in a thermos and pack your lunch. You will be amazed how much extra money you can save by eliminating all those drive through moments. Don’t feel ashamed because you have very little money, feel empowered! You have gained new knowledge which will allow you to make wise decisions about simple every day spending. I’ve been walking this out for so long, we still do not eat out very often, even though we now have the funds to do so. (Just ask my kids. LOL) It becomes a new way of life when you shift your thinking and change terrible money mismanagement.
Step Five- Evaluate where you are overspending and start cutting costs. This really goes hand in hand with number four. If money is tight, where can you eliminate waste? Do you really need 4 different subscriptions for streaming? Netflix, YouTube TV, Disney Plus, Hulu, Peacock etc… it adds up quickly. Maybe you can cut out one or two and save some coins. As stated previously, how much are you spending on food? Making a grocery list and eating from the house will always be cheaper (and better for you), so start planning more meals at home. Everyone’s budget will look different regarding what adjustments can be made, but I guarantee every budget will have items that can be removed to assist in money savings.
Step Six- Rinse and repeat. Getting a good handle on finances takes time and determination. Don’t give up! Keep pressing through and before long, you will have a different mindset about your cash and how you wish to spend it. What once felt overwhelming to you, becomes a source of stability and peace in your life.
In the months ahead we will begin to discuss more in-depth other money saving topics and budgeting strategies. This is an area I am very passionate about because I know how it feels to live under a mountain of financial weight I did not think would ease. Living Beautifully Simple with your money is a glorious freedom and I want to share that with you dear friends!
Please leave a comment below or reach out from my contact page and let me know if you have specific areas of interest you would like for me to address regarding finances. I am excited to see others living in financial peace.