1. Pay yourself first:
Paying yourself first allows you to save for emergencies, preventing you from taking out Pay Day Loans. The cost of a payday loan is problematic. Collectively borrowers spend as much as $9 billion each year on payday loan fees. On average, the fee for a payday loan is $55 for a two-week loan and the typical $375 loan will incur $520 in fees because of repeat borrowing. Is this you? Having at least $1,000 in savings will prevent you from being charged $520 to a lender in fees! Keep that money in your account.
For more information click on link below:
https://research.stlouisfed.org/publications/page1-econ/2019/04/10/fast-cash-and-payday-loans
Suggestion on how to save:
- Set up a savings account without any debt card at a bank far from your house.
- Set up auto draft for a certain amount of money to transfer to your savings account every time you get paid.
- These steps will help you avoid dipping into the account.
- The goal is to keep the money in the account and only use it for true emergencies. Example of true emergencies, need a new tire, repair to car or house, New purse and shoes doesn’t qualify… LOL!
Did You Know:
2. Follow God’s Instructions
God gives us clear instructions on how to govern our finances. His Word is the foundation we need.
- He gives instructions on how to set priorities Proverbs 24:27.
- In Luke 14: 28-30 He talks about creating a budget.
- In Genesis 41: 34-36 He shows how to set up an emergency fund.
- God covers how to avoid debt in Proverbs 22:7.
These are just a few of many verses that discuss how to manage our money. Once I started seeking God’s Word about money and being a better guardian of my money, my financial life changed for the better. The main principle to remember to get our financial life in order is to be disciplined about setting financial priorities, creating a budget, setting up an emergency fund, and avoiding debt. All of us can improve our discipline in at least one of these areas in 2021.
3. Get help with your finances
While I was growing up my parents did not teach me how to invest, save, or spend money. I started my journey of learning more about money about ten years ago. Reading books about money, attending workshops, and seminars about financial education gave me the knowledge I didn’t have. My new knowledge gave me the confidence I needed to make better decisions about money. Good books to read about finances are:
- Secrets of the Millionaire Mind: Mastering the Inner game of Wealth by T. Harv Eker
- Think and Grow Rich by Napoleon Hill
- Rich Dad Poor Dad by Robert Kiyosaki
Save money! Check out these books from your library!
Yes, I own a financial services business, But I still get help and learn from others that know more than me. The best investment I made in myself was taking Dave Ramsey’s Financial Education 12-week course at my friend’s church. That course changed my life and is one of the reasons why I started my business. Let us all head to the library, grab one of those books, and learn more about our financial lives!
4. Apply what you have learned!
We can read and attend workshops but if we do not apply what we have learned, it won’t work.
Now we have been reminded:
- to not spend
- to avoid debt
- to pay ourselves first
- to set up an auto transfer to savings every pay day
Do we have the self-discipline to do it?
One of the main characteristics of self-discipline is the ability to give up instant and immediate gratification. Self-discipline will give you power and control to overcome those fears holding people back. What is holding you back from being disciplined when it comes to your money? Being disciplined is one of the important requirements for achieving your financial goals.
Added information about being disciplined:
https://www.linkedin.com/pulse/top-10-benefits-discipline-vipan-thakur/
Go to The Financial Lady and get your free budgeting worksheet.
Be aware, be informed!