Some achieve financial freedom and enjoy its blessings. So what’s their secret? Those who’ve learned to manage money wisely know there’s one absolute, non-negotiable requirement for achieving true financial freedom. Rob'll let you in on the secret first.
Everyone wants to achieve financial freedom. Some do and enjoy its blessings. So what’s their secret? Those who’ve learned to manage money wisely know there’s one absolute, non-negotiable requirement for achieving true financial freedom. Rob'll let you in on the secret first.
The secret to financial freedom is nothing more than learning how to live within your means. Actually, below your means and to do it for a very long time.
Living below your means involves budgets and bank accounts but the process actually starts in your head. Whatever you think is often what you wind up doing so changing your thinking changes your behavior.
Why do most diets fail? Probably because they’re based on deprivation - something you can only tolerate for so long before going off the diet. If you feel you’re financially deprived, you’ll eventually start to overspend again. It’s the opposite of contentment.
Why might someone feel financially deprived? From the Bible - greed, envy or covetousness a lack of faith in God to provide. Whichever, it makes living on a budget difficult when it should be easy.
Solution - develop a sense of gratitude for what God has already provided. 1 Thessalonians 5:16-18 says, “Rejoice always, pray without ceasing, give thanks in all circumstances; for this is the will of God in Christ Jesus for you.”
Believe that you can live below your means. You don’t have to go it alone - James 1:5 says, “If any of you lacks wisdom, let him ask God, who gives generously to all without reproach, and it will be given him.”
Some tips for staying on budget -
Have “margin” - money left over at the end of the month. You have several fixed bills that come in every month and you pay them without thinking but now you should start thinking about them.
Can you lower your mortgage payment by getting rid of PMI or perhaps refinancing?
Can you reduce your heating bill?
Can you find lower insurance premiums?
Can you get rid of cable?
Americans are good at many things, but haggling isn’t one of them Whether it’s a medical bill, household repair or a new dishwasher, ask for a discount.
It’s easier to stay on budget if you actually watch what you spend instead of having stuff on autopilot. Do so by downloading the free MoneyWise app that allows you to track all of your spending.
Also get help setting up your budget from one of our volunteer coaches. Sign up at MoneyWise (Live) .org.
Another tried and true way you can eliminate that feeling of deprivation is by rewarding yourself. Celebrate small victories along the way to financial freedom. At the end of a successful week staying on budget treat the family to ice cream or after you have $1,000 in your emergency fund, maybe go out to dinner.
Try to spread out your spending for things like haircuts.
Look for ways to increase your income. Employers are desperate to find and retain good workers these days so it’s a perfect time to ask for a raise, or for more hours. Take on a side job or sell all that stuff in the garage so you can finally park the car in there again - to decide what should go use the one year rule: If you haven’t used it in a year, you probably don’t need it.
Next, Rob answers these questions at 800-525-7000 or via email at Questions@MoneyWiseLive.org:
If you recently found yourself in an immediate need for a car, bought a used car and financed it but are not happy with what you paid or the loan you had to get which was a 6 1/2 year loan at 7.8%, what's the best way to get out of this?
If you're looking for a high-yield savings account, where should you go - ally, CapitalOne360, Marcus,
When your financial advisor suggested that the best investments come from "vice" investments and you said you only wanted to participate in faith-based investments instead he, then, suggested ESGs instead, what is those?
What is the difference between a Certified Kingdom advisor and a fiduciary?
If you've been taking Social Security since age 65 but are now back in the workplace, are your benefits automatically recalculated?
If you're planning on buying up to the annual limit of $10,000 of I-bonds, is there any merit in spreading the total across several purchases over the year to make liquidating easier?
Because you had financial problems including bankruptcy in the past and have invested in the federal employee TSP G fund since 2008 and you only have $171,000 from investing since then, should you consider moving some funds into the C fund to make up ground at age 50?
If you and some Christian friends want to start a 501(c)(3) non-profit using a board structure for donating to missionaries and such, is this a good idea?
If you are currently using the snowball effect to eliminate your debt and expect some lean months coming up, should you shore-up your emergency fund to sustain your finances through those times?
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