Managing your Money: How to take your first step to managing your money

 

Time and money are probably the second most valuable resources we have next to our relationships. In fact some say time equals money;  how true!  If you are like me, you might have a habit of reflecting on your days and evaluating your time usage, thinking about what you did or did not accomplish. This process has made me to feel great in some ways and sometimes not so great in others because of the thoughts of regrets. 

Success is a result of disciplined life. Some of my regrets were the lack of applying my time to the new challenge I needed the most. It is obvious this economy has caused most of us to face a new challenge which is living within our means.  Companies, nonprofit organizations, schools and governments are trying to do the same - living within our means.  In the following paragraphs I will be discussing some of the realities we face to live within our means.    

Sometimes managing money can be harder than making money. Unfortunately, in the current economy both of these are getting harder.  However, in order to overcome our financial challenges we cannot ignore both making money and managing money. One analogy to explain this is the relationship of buying your groceries and eating healthy.

 See, you can bring the groceries home, but if you do not have a plan to prepare or cook it healthy, it can steal your health and position you in the worst place.  Making money is like bringing your groceries home; depending on how you consume (spend), it can add to or steal from your life.

 Money magazine states that 75% of families will have a major negative financial event ($10,000) in any ten-year period.  This is a major problem that can be overcome by understanding your spending habits.   It is not hard to understand that spending with no plan is like going on a journey with no map or direction and expecting to arrive in the desired destination.

 People with no budget or spending plan can walk into their favorite store and start spending not just the money they have but the money  they don’t have.  If we do not have some kind of plan ahead of time, our emotions can kick in and blur our reality very easily.  These emotions are causing many to do what they really don’t want to do. The truth is if you do not have a spending plan in mind, then you probably have spending emotions that will drive you with an unrealistic picture of your life only to hunt you down with regrets later on.  Sometimes dealing with these emotions can be painful, so most people hide or ignore them until the next spending blowout takes place.

 These emotions are so strong people can feel trapped, helpless, almost like dealing with a bad addiction.  It is like you know it is wrong and you do not want to do it; however, you find yourself doing the very thing you do not want to do.  But you are not the only one who is going through this. I believe this is the best time to get all the help you can get to face these challenges. Treating this habit should not be any different than treating other bad habits. 

 Here are some helpful tips on how to walk the talk of managing your money.  

1.            Challenge yourself by writing out the reasons why you want to change.

2.            List out the benefits of the new habit you are trying to acquire.

3.            Take action – take small steps toward tracking your spending habits. 

4.            Eliminate excuses by planning the next small step you will be taking tomorrow (remember          that excuses are your enemy, not your friend, and to continue to challenge yourself).

5.            Find at least two accountable people who can support you and simply tell them what you are trying to do (this will help you to recognize when you are slipping away).

6.            Make up your mind to refuse negative feedback.

7.            Track your progress; write down what you have accomplished.  Celebrate your accomplishment.

8.            Don’t give up.  If you fall, do not throw your plan away, but get up right back and keep on going.

9.            Keep reading this list until you make it a life style

I have spent with emotions and now I am spending with plan.  And, I would like to encourage some of you who are struggling with the same issues that bad habits can be overcome if you decide to work on it.  To change your actions you have to change your thoughts, and to change your thoughts you have to read and study on how to change the bad habits - in this case, how to change your spending habits. This process has positioned me to enjoy the freedom, confidence, contentment and peace. You too can be changed.  If you like to read more how to challenge your thoughts you are welcome to read my previous article titled “How much do you care for your finance?”  

Plain Truth

“Good planning and hard work lead to prosperity; but hasty shortcut lead to poverty.”  Proverbs 21:5

I use Mvelopes to manage my money. You should too.

I love Mvelopes because it helps me spend within my income, eliminate debt, and achieve my financial goals. Envelope Budgeting is the best way to manage your Money and Mvelopes is the one and only only award-winning online envelope budgeting system.

Click below to sign up for the free trial with my personal referral link.

Link: http://www.mvelopes.com/n-enrollmentv2/index.php?page=referral-user&accessCode=D001001024&referral=D03596195

Choose a System of Budgeting that will work for you

There are different ways of organizing your financial information.  The question is which one are you comfortable to work with.  I am going to classify it in three places traditional budgeting, Software budgeting, and online budgeting.  Let’s look at each system. 
 

Traditional Budgeting – The first system is traditional approach which is using paper and pen. To assist you with this system there are so many work books you can get on the market to work with.  Bookcloseout.com is one website I found with a great bargain.  This website will provide you from personal finance work book to strategizing, building and establishing your finance for less than $10.00. If you like to visit this web click on Bookcloseout.com on your left side and type “finance” on the search box.   Remember, you also can transfer your traditional way to electronic way by using Microsoft excel program.

Software programs Budgeting–The second system is software program.  Once you install the software then it will guide you step by step to complete your spending plan and so much more. Again there are many software programs on the market to choose from.   To start with you may choose to use “Crown Money Map Financial software” (with free 30 days trial).  Or “You need a Budget”.     

Online Budgeting – is the third system that will also guide you to follow a step by step instruction. This system allows you to tap to your information at anytime, anywhere you are as long as you have a computer or mobile phone.  And again there are variety brands that offer this service too.  The one I personally work with is called “Mevelope”

In closing I like to suggest that before you start investing on any of these products,    to start organizing your information on a paper or computer (Please, look for some instruction and worksheet on my next blog).   Then, make your decision which system to use and work on it diligently.   

Plain Truth

“Get all the advice and instruction you can, and be wise the rest of your life.”  Proverb 19:20

Do I Respect My Finance Enough to Make a Spending Plan?

When we deal with budget or a spending plan we are talking about discipline and stewardship.   Sometimes, just thinking about this process can be an overwhelming to those of us who never had the experience of it.  However, I just want to encourage you by saying that you don’t have to be intimidated or overwhelmed by it any more.  Remember, for every discipline there is a small or a baby steps toward it; I encourage you to take the first step toward order and little by little it will lead you to freedom. 


Why do I need a spending plan?  What do I benefits from it?  Below I have listed the benefits of a budget and as you read each line stop and ask yourself if you can use or better your life.  I hope you take the challenge today to take a step (baby step) toward it.


Here are some of the benefits of a spending plan or budget.
·        You will avoid debt
·        You will have well balance life
·        You will spend with confidence
·        You will live within your means
·        You will be positioned to save
·        You will have peace of mind
   
Plain Truth
“Good planning & hard work leads to prosperity, but hasty shortcuts lead to poverty.”  Proverb 21:5

The Three Popular Myths about Spending Plan(Budgeting)

 The first myth is “To leave on budget is a sign of not having enough, or to be stingy”. 

The truth is living on budget is actually a discipline that will position us to have more.  In fact we will have enough to cover our basis and not deprive ourselves or our family in the most important area of our lives. 

The second myth is that “for someone to invest he or she have to have a lot of money or surpluses”.  Another lie most of us believes.

The truth is every spending decision is an investment decision.   (E.g. When I get the bonus check do I plan a vacation or pay my credit card?)  Do I go out and eat or do I put it to the emergency fund I am working on?)

The third myth is “If I just work harder and make more money I will be OK and need not to live on a budget”.   

The truth is if I do not have the discipline to live within my means then making more money will position me to spend even more.

Plain Truth

“Getting wisdom is the most important thing you can do!  And whatever else you do, get good judgment.”  Proverbs 4:7

Giving Plan

You are probably wondering why I would choose to make a giving plan first than a saving or a spending plan. To plan giving in the foremost place will give us a purpose to live for something bigger than ourselves.   For me as a Christian the bigger purpose is to live for God.  Supporting a causes that we believe brings a huge satisfaction that our money can not buy.


To see the best charities in America go to http://finance.yahoo.com/family-home/article/111649/the-best-charities-in-america 


Plain Truth
"The generous soul will be made rich, And he who waters will also be watered himself."  Proverbs 11:25

Plain Truth About Your Finance

Most of us understand the layers of authorities in our life and the levels of respect we render to these authorities above us.  As an adult we have so many layers of authorities from employer to the public officers, administrators, Governor, all the way to the president of the nation and then, the highest authority of all, the creator (God).  The higher the authority the higher level of respect and reverence we give. 

And, of course when we care or show respect for someone or something; we treat the person or the thing carefully and thoughtfully. Today, ask yourself the following questions and answer them honestly.  

• Do you believe you care or show respect to your finances? 
• Do you take time to treat your finances carefully and thoughtfully?
• Do you care enough to make a giving plan? 
• Do you care enough to make an investment plan?
• Do you care enough to make a saving plan?
• Do you care enough to make a spending plan?    
• Do you respect your finances?

Plain Truth

“Wise planning will watch over you.  Understanding will keep you safe” Proverb 2:11