Updated: Sep 20
Today’s blog post is going to be about our finances. A lot of the time we don’t like to talk about our finances because either we are broke, we are not content with what is in our bank account or maybe we have a lot but don’t want our enemies to know! Over the last few months God has been teaching me so much about finances and as you all know, whenever I learn something new that is useful and beneficial to me, I love to share it with you guys, so here it goes…
And my God shall supply all your needs according to His riches in glory by Christ Jesus (Philippians 4:19)
Why is it that when we get a pay rise or an increase in income, we see this as an opportunity to spend more? When in fact, this could mean an increase in savings and investments. Now, this doesn’t mean we can’t treat ourselves with nice things, a trip away or a day doing something we love. But, if you have the mentality that I used to have, then a pay rise really meant an increase in expenses, including clothes, food and more food -_-. You can probably relate, dinners upon dinners (it’s not everyday). When I started to realise that a lot of my money was actually going to food (that being lunch, dinners and snacks), the saying ‘there is rice and stew at home’ became so real to me.
So, what ways can we be more financially smart this year and for future years to come?
This is something new for me, but the moment I started to note down how I was spending my money during the month, I realised how many unnecessary things I was buying and was able to cut some of these things out. Budgeting before each month is a great way to be financially disciplined with your money. You can even budget together with your partner if you tend to manage your finances together. You can find example budget sheets on Google to help you start off or you can create one yourself! Budgeting allows you to plan where you are going to allocate your money for the month and will hopefully push you to save a certain amount of money each month, which leads onto our next point…
No discipline is enjoyable while it is happening – it’s painful (Hebrews 12:11)
You probably don’t like the sound of this point but trust me, saving is one of the smartest things you can do financially. Even if you only put aside £100 each month, in a year this will amount to £1,200. Trust me, once you start the saving process and start seeing the amount grow in your account you will want to start adding greater amounts each month. And don’t try and fool yourself! If you are serious about saving this year, it is more financially smart to separate the money you want to save before spending for the month. If you are going to save, then it is also smart to open a savings account that you can earn interest on or one that you cannot touch the money immediately (if saving for a specific purpose - like an ISA). If you are going to save, it is going to require a lot of discipline so make sure you stick with it and the end results will definitely be worth it. It might also be worth having two sets of savings, one for emergencies/a rainy day and one for a specific purpose. Banking apps such as Monzo also makes it easier to separate and allocate your money to different things. But you still have to be disciplined.
3) Don’t just buy for the sake of buying
I used to do this so much, and to be honest I still do at times. During the Christmas period, I saw a Ted Baker bag on sale and even though I didn’t really need it, because it was quite cheap and was Ted Baker I decided to buy it. The first day I saw the bag, I didn’t purchase it, but I then returned the second day and gave in to the impulse. Really and truly I didn’t need the bag and I don’t even use it that often. Whenever you are about to buy something that is not an essential, ask yourself ‘do I really need it?’ This includes gym memberships which I know many people sign up for but do not actually use (yes I'm talking to you). By asking yourself whether you need to make the purchase, or whether you will use the good/service, you can be more financially smart and can save more of your coins on more important things.
4) Get out of debt
Romans 13:8 – Let no debt remain outstanding
So many people are so comfortable in debt or some just feel like there is no way out. This point is to encourage someone who may be struggling with debt, whether that is overdue bills, a credit card or an overdraft that needs to be cleared. It all starts with one step! Do not try and do it all at once but do make it a priority and take that first step towards clearing all your debt. I've also heard about debt consolidation but I would urge you to research this in your spare time.
Final Word of encouragement…
That’s all for now guys. I hope this post has helped someone who wants to be more financially smart this year. I am not a money expert and neither did I study Finance in University however, these are life skills I have learned and I am glad to share. Let me know of other ways that we can be financially smart as we can all learn from each other.
Don’t forget to like, comment and share this post with someone else. Someone else may need this more than you do!
And, above all guys, do not love money as we all know what the bible says about this!
Peace & Blessings