This past weekend, my pastor, Brian Tome, of Crossroads Church talked about practical ways to create healthy margins in your personal finances.
You might be surprised to learn (or maybe not) that for 80% of the people in financial distress, income is not the problem. So if you’re a mid- to high-level income earner and feel like your money margins are razor thin, you’re not alone!
Here are the 8 steps to creating financial margin in your life:
- Enact a Strategy. This is also known as a Spending Plan or Budget. Here’s the most important question you need to ask before you start budgeting.
- Increase Your Inflow. Sometimes, more income is the solution for reducing your money stress especially is you have credit card debt that needs to be eradicated.
- Set Your Finish Line. How do you know when you’ve “made it?” When is enough, enough?
- Be Content. In this consumer culture, we’re constantly pressured to upgrade our stuff.
- Embrace Your Thing. What makes your heart sing? It’s okay to spend money on that hobby or activity you love, whether it’s motorcycles, painting classes, or vacations. In order to spend money on the things you love, cut back on other things that aren’t as important to you.
- Incur Only Investment Debt. If you are going to borrow money, only do it for assets that grow in value, like your house.
- Recruit Trustees. You need trusted advisors on your Money Team! As Proverbs 15:22 says, “many counselors bring success.”
- Start NOW. Do something small TODAY to start moving your money margins in the right direction.
Need more help? Financial coaching can really help if you’re feeling overwhelmed with your money situation.