How I Learned to Tell My Money What to Do

Having trouble with your finances? We’ve all been there…

To be honest, I have never really been all that great with my personal finances. When I was young, I loved the thrill of receiving a couple of bucks to go and spend wherever and however I wanted. There was nothing like it! Even today, shopping is something I love to do, especially online: you can browse for hours, you do not have to interact with anyone, and there is so much more out there than you are able to see in the stores!

But, I realized something recently; I can be a bit materialistic…not in the sense of wanting to buy everything and have the most expensive, most up-to-date things, but in the sense where I can have money oriented tendancies. I have never really been a saver for the bigger, more important things in life.

My dad gave me this bit of wisdom a few years back: money isn’t everything, but it sure makes life easier. I always understood it, but never really took it to heart until recently. Since graduating college, I have sought out consultation, advice, and tactics for how to be frugal and fiscally responsible with my personal finances. Let me tell you, it has not been easy. Luckily, I have been blessed with a job that has helped get my financial plans underway. It has been a long road, but I have finally figured out how to tell my what to do and where to go.

Throughout the process, I have found ways to manage my money that have stuck.

I created a cash flow chart for myself.

I think this was probably the best thing that I could have done. Instead of spending my money without thought, I would tell it what to do and where to go. This has helped me to save for my future plans and get a better handle on where my money is going. I took control of my money and no longer let it control me.

I use a percentage system.

Ever heard of the 50/30/20 rule? I created something very similar for my cash flow chart, and it has worked wonders for me! 50% goes to needs (bills, rent, church, etc.), 30% goes toward the current thing I am saving for (moving to New York and paying for my intensive program), and the last 20% is broken up into smaller percentages for future savings (emergencies, retirement, future home). As you can see, it is very similar, almost exact. However, I tweaked it to fit my current needs. It is not a set-in-stone plan and could change as time goes on. But for now, it is doing what I need it to be doing.

I check my finances once a week.

I never used to pay a lot of attention to my finances because I only had a single bank account. Now, I’ve made a routine of checking my accounts once a week to make sure that everything is where it is supposed to be and accounted for.

I diversified.

Remember how I said I only had one account? Well, that has changed drastically. I decided that, in order to save for different things and collect interest, I needed to diversify. This has aided my savings immensely! By being specific with what you are saving for, you give yourself a better chance of succeeding.

I ask for advice and I give back.

Before I do anything with my paychecks, I have tried to get into the habit of praying for what needs to be done with the money that I have been given. I have asked God many times for guidence with my finances. For a while, it felt like I was not getting any answers. But then, after hearing a sermon about giving back what God has given to you, I decided it was time to give back. At first, I was worried because I was still a couple hundred dollars in debt. But let me tell you, God has a plan and He provides! After that, I recieved a commissions check from work, which was a lot more than I had originally anticipated. Now, I am so much closer to being free of any debt!

I am consistently figuring out what my needs are versus what my wants are.

This has everything to do with my spending. Do I need that new outfit? Do I need to go out to lunch today? Can I afford to splurge a little today or should I wait and save it for something that is similar but of better quality?

Asking myself questions like this has really helped me to decrease my spending. There are so many other things that I need to spend money on in order to invest in my future; dance and voice lessons, for instance. If I spend money on a new outfit, I might not have enough to pay for those lessons. Everything just boils down to being able to separate a want from a need.

Getting down to the nitty gritty of finances can be a huge pain and very stressful. Money is not something that can be ignored. It can either be a helpful tool or the cause of your demise.

Just keep in mind: don’t let your money control you. It might take some time to figure out, but you can do it. Money isn’t everything, but it sure makes life easier.