In order for us to transform our financial situation, we must first transform our minds so that we no longer think the same way or do the same things that caused financial lack or ruin in the first place. Listed below are areas to address for establishing new patterns of behavior to be financially fit and free:
1. God’s Principles. There are certain nonnegotiable principles of God’s Law that work whether we are Christians or not. That is why there are many wealthy people who may not profess to be Christians, but they have discovered the tremendous benefits of tithing, giving to others, and the principle of Sowing and Reaping, also referred to as Seedtime and Harvest or The Law of Reciprocity. (See Malachi 3:8-12; Luke 6:38; II Corinthians 9:6-10; Genesis 8:22 and Galatians 6:7.)
2. Resources. In order to become inspired and motivated to be a financial victor, read Rich Woman: A Book on Investing for Women by Kim Kiyosaki, Rich Press, copyright 2006. Use a bright marker to highlight financial strategies that you can use to break any negative fiscal habits, reduce and alleviate debt, and increase your cash flow. Jot these strategies down in your daily journal as you read and work toward implementing them immediately.
3. Budget. Devise a true budget listing all of your monthly expenditures (i.e., 10% tithe of gross income plus an offering, mortgage or rent; insurance for house, car, health; utilities, IRA draft, credit cards, consumer debt, loan payments, car payment, fuel for car, groceries, etc.) and all streams of income from employment and business endeavors. Subtract your expenditures from your income to see if you have a positive or negative cash flow.
4. Cash Flow. If you have a negative cash flow, devise an immediate plan to receive extra income (i.e. starting a home business from your computer, offering tutoring sessions in an area you are gifted in at an hourly rate, getting a part-time job at a business establishment that has a “Now Hiring” sign posted in the window). Pride should not be an issue or even a consideration. At this point, the goal is to find the quickest route possible for immediate income in order to get out of debt.
5. Credit Card Debt. Never pay the minimum payment due on a credit card, for you will continue to be assessed an extremely high interest rate and if the bill is past due, you will also have to pay a late fee. Start with the smallest credit card amount and pay at least double the minimum payment or whatever you can afford until you pay it off. Next, roll that same amount of money over to pay off the next credit card or debt owed.
6. Banking Services. Once you have paid off your debts, do not think that you have extra money for which to splurge. Start an emergency fund where you have at least six months of income saved for those “just in case / unexpected” moments. Shop around at different banks to see who has the highest rate of return for investing in a Certificate of Deposit (CD) or money market account, and what benefits they have for keeping your checking and/or savings account with them. Contrary to what you may think, banks want and will compete for your business. Make appointments with the bank manager of each facility so they can get to know you and accommodate your needs.
7. Financial Counseling. Seek out someone who is a qualified and an experienced financial consultant who could offer assistance and counsel to you at a rate you can afford. He or she will devise an entire financial portfolio to include all your assets, liabilities, retirement needs and how to prepare accordingly, as well as suggest avenues of investing your money into mutual funds or whatever suits your risk tolerance, fits your values and accomplishes the end goal of you taking charge of your money and multiplying it through wise investments suggested by wise, experienced counsel.
8. Rewarding Yourself. You can reward yourself every so often for sticking to your Financially Fit and Free plan (i.e., a new outfit or pair of shoes, manicure, pedicure, hair salon appointment, massage, a night out for dinner, etc.), but only as your budget allows. Allow extra money to be placed in the highest interest bearing accounts.
Comments