Money Management 101

We come to a point that we earn for ourselves. If we follow all our eyes’ desire, money can vanish at a time especially when we go to the malls and like a lot of stuffs even we still have enough. I can be impulsive when it comes to shoes. I have several pairs and I am not even using some since I just work at home. There was a time that I even rationalized that I have to reward myself because I am working hard.

Managing your money is a skill and requires discipline. Here’s my personal ways of managing my money.

1. Tithing first!
In our church, we have this Law of Tithing where we contribute 10% of our income. This is not just a protocol but a commandment from the Lord. The Old Testament prophet Malachi speaks that windows of heaven will be opened once we pay our tithes. I attest to it! My mind is more open on how I can manage the remaining 90%.

2. Determine how much you will save monthly.
I believe this really matters. If you have set to save 40% of your income, be firm!  Count up how much you can save annually if you do so.

3. Create a budget plan
I allot my salary to different expenses like food, house rent and groceries.  Make a plan how much you will spend for certain areas.

4. Monitor your expenses
I find it helpful to list down in a notebook and document in a spreadsheet all my expenses. You can easily see if you really followed your budget plan.

5. Wants vs Needs
Just learn to differentiate what you want and what you need. If you want to buy stuffs, just make sure you have enough cash on hand. If you need to work hard to earn for the things you want, then do it. For me it is fine to buy stuffs I can afford as long that I don't borrow money just to buy it.

6. Cook instead of buying in fast food chains
My husband and I still have our dates every week. We eat out once or twice a week. The rest, we just cook at home. He is a great cook and I’m learning.

7. Avoid debt of any form
I find it disturbing to think that you owe someone an amount. There are some products that you can purchase on a month period. If you can pay in full, why pay in installments.

8. Healthcare and Insurance
This can be neglected at times. I make it a habit to really pay my dues once I got my pay.