Enjoy a message from Pastor Ken from our brand new series: Money Talks *Notes below
Proverbs 24:3-4 3 By wisdom a house is built, and through understanding it is established; 4 through knowledge its rooms are filled with rare and beautiful treasures.
Allocation - “The action or process of distributing something.”
Good Spending plans have a few things in common:
1.) They account for all income
2.) They account for all expenses
3.) They plot a clear path forward to cover the “big four” Shelter/utilities, food, transportation, and basic clothing.
4.) They are easy to read for all involved
5.) They are looked at and regularly evaluated against an objective standard In preparation for your regular finance meeting, you need to spend a little time looking over your spending plan and updating it.
Ask questions of the numbers like:
Is this still important to me/us?
Does it support our goals?
How much longer do we need to pay on this debt?
Are there better ways we can track this expense?
Are there ways to minimize or eliminate this expense altogether and move the money toward our future?
What spending behaviors can we stop, start, or change to move us toward the bigger goals we have for our future?
What would we do with an extra $50-$1,000 per month? How could we raise it?
What if we went on a spending freeze for a week or a month?
How much could we save to eliminate debt?
Automation - “The technique of making an apparatus, a process, or a system operate with minimized human input.”
Money doesn’t care how you feel; it simply goes where you tell it. The difficulty we often have is our moods dictate how we handle money. If I am feeling blue, I might randomly search for something on Amazon, and just the hit on the “buy it now” button will make me feel incrementally better. Unfortunately, I just told my money to go do something which will impact me later and maybe short me on my financial house.
For some inspiration regarding these thoughts:
“Start Late, Finish Rich” David Bach
“The Automatic Millionaire” David Bach
“Smart Women Finish Rich” David Bach
