Dec 20, 2023

Money Wise

Financial Lessons

I know we all have a fundamental understanding of money and how it works. However, since we’re going into a new year it may be helpful to review our knowledge and understanding in order to progress.
Recently, I reviewed an article published last week by NBC Make It that listed several ways we can do this:

1. We need to establish the goals, values and desires that matter to us. If our goal or desire is to purchase a home, spending money on travel or entertainment may not be the most practical way to make our home investment goal a reality. We shouldn’t feel pressured by friends to work towards objectives that don't align with our primary dreams in life. This could cause unneeded stress and frustration where we abandon our hopes, our goals and our desires prematurely.

2. Experts like Warren Buffett agree that one of the easiest ways to build an investment is through compound interest. In his words, the “cash [we] invest earns interest, which gets added to [our] initial investment and [we] start earning interest on the interest.” And he suggests we keep our investment growing for as long as we can.

3.If we’re not keeping track of our spending, even those who seemingly have plenty can easily wind up with little or nothing. So avoid impulse spending and make sure each dollar is spent the way that truly matters to us. Is the item worth the cost or can we forego the expense until another time? Writing down our monthly expenditures will help us identify our cash flow so we can re-strategize if necessary. Remember “A goal without a plan is merely a wish.”

4. It's wise to openly discuss money issues. A trusted and more experienced associate can share ways to help. For example, are we wisely using credit cards to meet our needs without damaging our credit history. When credit cards are paid timely, our credit scores go up. If we’re unable to pay the entire balance for the month, remember to pay more than just the minimuim and also remember to curtail spending until the balance is paid in full as quickly as possible to avoid those extremely high monthly interest rates. Credit card companies are in business to make money. We don’t want to allow them to get rich off our hard earned dollars.

5. We all make mistakes so let’s learn from them. Start by asking ourselves or those involved how the error ocurred and what can be done to prevent the error from recurring. One of the worst things we can do is lie to ourselves. When we accept responsibility for our actions, we are on the road to recovery.

6. Let’s surround ourselves with people who support our goals. When we are pushed to spend outside our limits, it’s more difficult to stick with our outlined goals. Yes, we may not all be in the same financial situation, however we can be supportive and encourage each other to stay the course and stick to the established goals helping one another to succeed.

7. Finding free or low-cost activities can make the money management process more enjoyable. While learning to invest our money and build our wealth, we need to enjoy life by having fun with those with whom we love sharing. Volunteering, spending time in nature or simply free dancing may be an option. Whatever makes us laugh and smile is sure to help us enjoy life as God intended.

In summary, true wealth isn’t about money. True wealth is enjoying what God has given us and using what we have to glorify Him. The Scripture tells us that “...Money answereth all things”; however it doesn’t say that it is THE answer. We are more likely to be at ease when we aren’t concerned about financial matters or any other matter for that sake. When our finances are in order, we can relax and do the things we desire that line up with God’s Divine plan for our lives. So having the skills and knowledge to effectively manage our resources is paramount. 2024 is a new year. Planning now can help us reach our financial goals and beyond!

Leatha Foreman 12/20/23 # 1051