| Organization |
Working toward and maintaining financial security is important in life. I believe it gives you a sense of security and peace. Below are five tips to consider for managing your money along with printable worksheets to help you try them out.
1. Live Within Your Means
The first principle is to live within your means. This is hard in our society with credit being the norm. Yet, I would highly recommend reviewing how much money you are bringing in, how much you pay in monthly bills, and how much money you have left. Take this and create a budget. Then avoid debt. It is a slippery slope. Other than a car, a home, and possibly school tuition, if there is something you would like that you don’t have enough money for, save up for it. You don’t know what the future holds, and if you already can’t afford something and emergency costs come up, it makes it harder to pay off the debt you owe and creates the conditions to have to add more debt to your life. Sometimes emergencies, etc. come up that leave you little choice but to go into debt, or perhaps you find yourself already in debt. Make paying off that debt a priority.
2. Save
The second principle is to save. Once you are debt free, minus a car, house, or student loans (make paying these off a priority along with saving), I suggest saving for your retirement, for an emergency fund, and finally for fun, goals, travel, etc. When you are creating your budget, include the amount you plan to save. Even if money is tight at the time, saving a small amount will create the habit of saving and the money will start to add up. Once you’re able, you can always increase the amount you plan to save.
3. Have Insurance and Be Prepared
The third principle is to make sure you have insurance (health, automobile, and home or rental) and that your will and affairs are in order. Health emergencies, accidents, or natural disasters can add up to catastrophic sums without insurance, and having a will and your affairs in order helps give you peace of mind and makes things easier on your loved ones when you pass.
4. Monitor Your Money
The fourth principle I have to offer is to monitor your money. It’s important to keep track of all your finances. You want to understand all of your accounts and make sure your money is in the best place. It might be worthwhile to check out some financial books at the library or listen to some podcasts on finances.
5. Give
As a bonus principle, be generous with your money and help others in ways you are able. You can give to a charity that resonates with you, buy a homeless person a meal, or help out someone who is in need. Giving not only helps others, it can keep you from having a scarcity mindset and bring about feelings of contentment.
~
Click here for printable worksheets to accompany the above principles. As you complete the worksheets, accept where you currently are and give yourself grace. Think about what your financial goals are and what steps you need to take to reach your goals. Then commit to sticking with your plan. And, especially in the area of finances, avoid comparisons and be patient. Everything takes time.