Friday, August 1, 2014

Being Smarter With Money




Hello lovely people! I've been MIA for a while, but I'm back. And I will try my hardest to be more consistent. But cut me some slack, and blame it on the kids. HAHA!

Money problems can lead to depression, stress, jealousy, divorce, and so much more. Today almost everyone has a credit card, school loans, mortgage, car note, rent, cell phone bill, and/or some form of debt. A large amount of people are also living pay check to pay check, and way above their means. With the amount of financial workshops, seminars, apps, shows, books, ..etc., you would think by now everyone should have this finance thing together, right? Wrong!

In the past I've spent so much money on things that were unnecessary. And it seemed like the more money I made, the more money I spent. Half the time we spend so much money on things that won't matter 10 years from now. Now looking back, I wish someone had told me the things I know now. This is why I'm taking this time out to help you be smarter with money.

Step 1.

Write a list of attainable goals within a particular time frame. Keep in mind that most goals are attainable, some might take more time than others. For instance, If you're trying to save money for a car that cost $15,000. Write it down.

Step 2.

Create a budget. There are so many budget apps on Android or iTunes. Some are more complicated than others, but I'm simple so I use the "Pocket Budget" app on Android. If you're not into apps, you can simply use an excel work sheet or a piece of paper and write down all your incomes( money you've earned) and all your expenses(money you owe or spend). Click Here for an example of what the budget should look like. So basically, you'll calculate all your income and all your necessary expenses. And minus your expenses from your income.  Be sure to include your  tithe in your monthly expenses, because it is necessary. Without God everything positive in your life would be non-existent, so your  10% tithe is simple showing your appreciation.

Step 3.

After you have subtracted your necessary expenses from your monthly income, the balance is what will be used to achieve your goals in step one. So in other words your balance is what you will save in your bank account. And based on your balance you can determine how long you can expect to achieve your goal(s). In your balance you can also take a small amount($20/$30) to spend on yourself.

Step 4.
ALWAYS STICK TO THE BUDGET! If you decide to only spend $30 on yourself for hair, make-up, clothes...etc., do not exceed this amount. Doing so will obviously decreases how much money you will have to achieve your short/long term goal(s).

IMPORTANT: Aside from trying to achieve your goals, you should always have 6 months emergency funds. Your emergency funds will be the total amount all your expenses  multiplied by 6. This is money that is not used to achieve any particular goals mentioned in Step 1. It's only used for worst case scenarios. For instance, your workplace closes down, your child gets sick, you're out  of a job...etc. Always have 6 months emergency funds.

So there you have it! In a nutshell, three ways to be smarter with your money are by setting goals, budgeting, and always having an emergency fund. Comment and subscribe. Let me know if you budget. How has it worked out for you? God Bless!

Peace and Love,

HeartMama

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