Are You Out of Control with Your Finances???
Turning Financial Weakness into Strength
All the financial information that I can give is simply "motherly advice." We did not know, nor did we implement, these ideas on a consistent basis when we were raising our children. Therefore, we often had great stress regarding our finances throughout our marriage. These are "do what I say" not "do what I did" types of suggestions! Here are some financial insights from two people who can give you even better advice than mine!
- Suze Orman— Suze combines wisdom with heart to offer a book that not only gives sound advice, but it explores the emotions and memories that subconsciously block our efforts to get ahead. Life is more than "get all you can; can all you get; sit on the can" (as some financial books seem to assume). It's about taking charge of our finances so that we can experience personal freedom, provide for those we're responsible for, and help the less fortunate.
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- Dave Ramsey— Your decisions from today forward will affect not only your life, but also your entire legacy. It’s important to know your decisions aren’t just about you—they’re laying the groundwork for your entire family tree. If you can successfully build wealth, that wealth becomes a sturdy foundation for your family to stand upon. You can’t build wealth or grow a legacy with debt. Holding onto debt is setting up future generations to repeat those same mistakes. But making smart financial choices provides an example for your children—and their children—to live by.
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Our best day to review finances is Saturday morning. If we do it every week, it doesn't take long. If we neglect it for weeks (or months) it sometimes takes the whole day! We are still learning to be consistent. This a "weakness" we are trying to turn into a "strength."
Just like you are in the habit of carving out time each week to attend church or doing other pleasurable activities that are important to you, you can carve out some time each week to review and discuss finances. You will be blessed financially and spiritually when you do it!
How to Have A Productive “Financial Discussion” With Your Spouse
- Ask your spouse what day and time would be good to sit down together and discuss finances. Find a time that works for both of you. Make sure you arrange your other commitments, so you are both free.
- If you need to hire a babysitter or have your kids watch a good movie while you work on finances, then do it. Or do it after they are in bed asleep.
- Pray together first and ask Heavenly Father to bless you in your discussions.
- When you start talking about money matters, if one of you starts feeling emotional or angry, then end the discussion for that week and set an appointment for the next week.
- Keep praying that you can have good financial discussions in the future.
- After a few weeks of trying to talk about money, you most likely will be able to stay calm during the discussion. If not, then repeat #4 and #5.
- Follow the Daily, Weekly, Monthly, Yearly: Money Management Plan described below.
Financial Stewardship
- Read books such as 9 Steps to Financial Freedom by Suze Orman or Total Money Makeover by Dave Ramsey. They are the experts!
- Kneel in prayer together with your spouse and ask Heavenly Father to bless your marriage financially and open doors of opportunity so you can earn enough money to live within your income, budget your money wisely, and have a happy, debt-free life. Remember your financial life is important to the Lord. You need the Lord’s help and guidance. He will not leave you alone as you earnestly strive to learn these eternal principles of stewardship and self-reliance.
- Be in control. If you’re not in control of your money, you’re not in control of your life.
- Remember that finances should be a financial issue, not an emotional issue. Money is a real thing, not a feeling. You either have it or you don’t.
- Have confidence that you (and your spouse) can learn the financial skills necessary to manage your money wisely.
- Pay your tithing as soon as you get paid. Put money into your savings account. Then carefully budget your money to pay all your bills and still have a little fun!
- Find a simple budgeting plan that works for you. If you use a credit card, pay it in full each month. If you are currently carrying debt on a credit card, make it a priority to pay it off as quickly as possible.
- Get counseling from a financial advisor if necessary. It’s just like going to a doctor—if you need help, get it!
- My mom used to say, “What you own, owns you.” Think carefully about what you want to “own you.” Whatever you choose to buy, must be taken care of by you.
- If you want to buy more “things,” then earn more money first. Don’t buy “things” on credit.
- If you are like me and can’t hold a month of finances in your head at one time, and don’t remember what you spend every day, use the Daily, Weekly, Monthly, Yearly: Money Management Plan described below.
- Fixed, fluctuating, and yearly expenses should be reviewed once a month. All of the following financial obligations must be anticipated and planned for on a regular basis:
- Tithing
- Savings
- Annual expenses—taxes, memberships, magazine renewals, dues
- Fixed monthly expenses—rent, house payment, or car payment
- Fluctuating monthly expenses—utility and phone bills
- Variable daily and weekly expenses—food, clothing, toiletries, household goods, gas
- Debt repayment
Daily, Weekly, Monthly, Yearly: Money Management Plan
- Daily: Add up the amount of money that each of you spend each day. Add your totals together with your spouse for daily accountability.
- Weekly: Choose one day of the week to discuss finances in a peaceful, non-stressful environment. Record expenses in categories and add up your weekly total. If one category has been overspent, readjust your categories so you stay within your budget.
- Monthly: At the end of each month, add up everything that has been spent by you and on auto-pay through your bank or credit card. If you have gone over your monthly budget, decrease your monthly budget for the next month and buy less in all categories.
- Yearly: Write down all anticipated large expenses that might occur once or twice a year. Add these numbers up and divide the total by 12. Put this amount of money into a yearly savings account each month so it can accumulate throughout the year and be there when you need it. Also, put in some extra money for emergencies that will most likely happen sometime during the year.