Financial stability is a goal we must continually keep in our sights. Even if we attain it once, it is a bit like the horizon, always out there for us to keep working towards, recommitting to the principles that keep us on the path. Like footsteps one after another, here are three steps that we just keep repeating anytime we receive income and must decide upon the outgo:
- Pay it forward first (donations to causes you deem worthy! Tithing and generosity affect more than our wallets — our very character)
- Pay your future self (savings),
- Pay stores: for needs first, then wants. SPEND WISELY.
Be willing to sacrifice for the sake of stability. Realize that peace of mind is priceless.
Knowing that you can pay for the flat tire, stitches or broken window brings peace that you know you can pay for the expense without touching your monthly budget.
Develop the attitude that less really can be more. Simplify! Embrace the concept of ENOUGH.
Work together to make things work: Value ALL the work necessary to make a family successful, whether or not it brings in financial income.
When A child is learning they may attempt to put the round block in the square hole, or the square block in the triangle hole. They may become frustrated and believe it won’t work. As they observe you putting the right block in the right hole they desire to model after you. They try and try until they begin to recognize and understand the shape matches the hole it fits into. We too believe things won’t work until our perspective becomes clearer. As we learn from others we too can see more clearly how that budgeting is like fitting the right piece in the right place. It too can work for us.
Pay God first (tithing).
A common phrase we all have maybe thought or heard from others “ I can not afford it” “There is not enough money”
As you do your best to make ends meet sometimes it doesn’t seem to be enough. Many people go year to year living paycheck to paycheck. When writing your budget many times the total ends with a negative balance. . You are not alone and this is a very common lifestyle for many.
It has taken me many years to change my understanding of how to manage the outgo of our family finance.
We are right when we pay the bills first that leaves nothing left for God.
We think about our temporal needs first. We need shelter, food and clothes so that goes to the top of our list. No one wants to go hungry, naked or be out in the cold. So it is natural to rationalize why that would be our first expenses.
When we take a step back and recognize that our source of temporal needs come from the earth. Who created the earth? Who provided the means to have food at our table, Clothes to be made from the earth also from animals and our homes are made from the very earth substance to provide our shelter. Our creator made all things possible through all he has blessed this earth with.
I would like to use the example in the personal finances self reliance manual page.41( The Church of Jesus Christ of Latter Day Saints)
In our possession we have sand, a big rock, pebbles and a glass jar.
If we took the empty jar and filled it with sand half way then tried to place in it the bigger rock and a few pebbles we would find it difficult to fit it all in the jar. This is the most common way we arrange our budget
But what if we put the bigger rock first and the pebbles then poured in the sand you will find that everything could fit in the jar.
As we take into account that all we have comes from God. He knows our needs before we do and he will provide us with the means as we put him first into our lives. Spiritual and Temporal.
Let us Rearrange our financial priorities – Put God first by listing him at the top of your budget giving back to him.10 percent
Take the Challenge and Put God first.
Example:
- Income: 1000
- Rent – $300
- Utilities – $150
- Groceries- $200
- Dentist-CC $150
- Clothes-CC $100
- Car Repairs- $50
- Gas- $50
- Total- $1,000
Example:
- Income- $1,000
- Tithing- $100
- Save- $100
- Rent $300
- Utilities- $150
- Groceries $200
- Gas- $50
- Car- $100
Take a look at the second budget: we have an added line for Save. Paying yourself is like adding the pebbles in the jar. You allocate that toward expenses ahead. Doctor visits, vacations, surprises that you don’t expect. It is less of a stress when you are prepared than wondering where it will come from. Also if you don’t have a car payment set the car money aside for car repairs, oil changes and insurance.
Being Prepared is best.
After learning about paying God and paying ourselves we became more financially self sufficient.
We set up various accounts:
Hsa if your job offers it. Takes out money before taxes and is allocated for health care expenses.
Car Expenses – Insurance, repairs, tires, also new car if needed
Family Vacation – Trips, outings, family time
Home Expense – The unexpected expenses, Utilities, insurance,
Create accounts that meet your needs.
After you access your needs, pay them next and make sure you are spending your income wisely.
Rent, Utilities, food, gas and clothing when setting up your budget. Make sure you keep to your needs. Wants will fall into place later when your savings allow for such purchases.
IF we do not take the time to pay ourselves we start feeling left out and when an emotional roller coaster comes we make rash decisions. One is eating out when stressed, shopping spree and other impulse buying. If you have your budget allocated with a purpose. This can help you spend wisely the income you worked so hard to get.
Our family has a list of places to go where it is free. Hiking in the mountains, bike riding trails around the city, Parks, and Taking walks in the neighborhood.
Libraries can be fun places to visit. Also
Budgets come in all shapes and sizes. What works for one person will not especially work for another. We also find that our life situations change. We add children that increase the needs and as they grow older and leave the home your budget needs may decrease. You also may have medical needs (Mental, Physical) So what Budget is right for you? As we explore a variety of styles of budget remember that it takes time to achieve the desired results.