“Dishonest money dwindles away, but whoever gathers money little by little makes it grow.” -Proverbs 13:11, NIV Bible
I love money, [who doesn’t?!]. Mostly because it gives you freedom to live the life you desire. I’ve been influenced by my dad’s teachings and knowledge about money. As a Christian, there’s so much guidance in understanding the importance of building wealth and how to do so. Here are a few foundations tips that I’ve found helpful over the years to maintain financial health.
Write Down Your Financial Goal: Always have a plan when it comes to finances. Money can easily be mishandled and when you don’t have a plan for it, trust and believe it will disappear before your eyes. I used to be a HUGE spender in college. Like the same day I’d get paid, that money would be out the window. However, in my final year of my undergrad, I started reading books and watching videos on how to manage money. I have a journal where I write my short and long term financial goals.
Routinely Review Your Assets: I check ALL my Bank accounts daily. This is a habit I developed when I was in college. You can do this by turning on your bank alert feature or visiting your bank app. This habit helps me tremendously because I’m confronted with the reality of my financial health. Moreover, I can easily review how I’ve spent my money daily, weekly and monthly and, I can adjust my habits if needed to match my financial goal.
Separate Your Accounts: I don’t believe you should have just one account. If anything, at least have one checking and one savings account. This is to ensure that you’re separating your funds to specific needs. I don’t regard my savings because it doesn’t exist in my monthly spending account. For example, if I have $1,000 in savings and $200 in checking, I only have $200. Also, each account plays a specific role such as daily spending, education, travel etc. When you separate your account, you give a function for you funds and it helps you to have a clearer picture of your financial health. Specificity is key when it comes to financial planning.
Budget Your Monthly Allowance: No matter how bad or good things have been for me, I ALWAYS have a budget. I have a weekly and monthly budget that I review each month. I have a living budget (bills and necessities), food and fun budget, hair budget, travel etc. I budget to create financial boundaries. It’s also makes it easier to assess what you can or can’t afford.
Build A Habit of Savings: It’s very important to save! I’ve had so many life changes that I survived through because of my savings. In the midst of this pandemic, it’s even more evident why saving should be prioritized! If your 9-5 income is not enough to save, consider finding side hustles that can go directly to your savings. In my case, I have multiple side hustles that I engage in. I aim to save at least 50-80% of each check I receive from my side hustles.
Give Within Your Budget: I support giving to others and helping those in need. However, you cannot give properly when you’re still struggling. Learn when it’s appropriate to give and when it’s appropriate not to. I know it might sound bad, but if you don’t create a boundary in giving, you’ll run into some financial trouble. Also, make sure you’re giving for the right reasons and not for clout or because you’re being forced to. The main thing to assess in giving is whether your budget allows for such giving.
Invest Wisely: This is a tricky one because though it’s a great activity to engage in, you have to be mindful and informative. I’m still quite new in the investment game so I won’t say too much. I will say that in order to invest, you must first master saving. Investment can be long term and you have to be able to do without that money for a while. Moreover, it’s possible to lose money in investment so be sure to make appropriate decisions.
Overall money can be a powerful tool when you have the right mindset and character to manage it. If you can’t manage $100, you’ll find it difficult to manage $10,000 let alone a million dollars.
I hope you found this blog insightful and it helps in building your financial health. What habits do you’ve developed that’s helped you with money management? Please leave your comments below. Thanks for reading beauties! Until next time, you can keep up with me on Instagram @itsdeborahqueen.