Striving for a Healthy Financial Lifestyle

As we find ourselves halfway through the year, it's an opportune moment to pause and reflect. Many of you are already setting goals for the coming year, and for many people, areas such as career, health, and finances are always a challenge. Out of all these, finances can be the most challenging, usually due to the lack of goal-setting and a plan of action. That being said, I would like to share some tips to help you have a better and healthier financial status and end 2024 strong. Although I may not be a financial expert, I would like to share some proven tips that will get you started in the right direction with creating healthy money habits.

1. The Foundation of Financial Health: Set a Weekly Budget and Stick with it.

Setting a weekly budget can be intimidating, especially for those not particularly numbers-savvy or accustomed to spending freely. However, having a healthy relationship with your finances begins with knowing where your money goes. It's not about restriction but about empowerment.

Budgeting is vital to having power and control over your spending. You can easily spend your money on unnecessary things without a budgeting plan. This holds true even if you’re making good money. Budgeting is not just for the cash-strapped. It’s for the responsible and the smart spender.

Why Budgeting is Essential:

• Helps you track your spending.

• Ensures that your money is allocated to necessities.- Prevents unnecessary spending, allowing you to save more.

Steps to Set a Weekly Budget:

• Know Your Income: Calculate how much you make bi-weekly and divide that into two for a weekly budget.

• List Necessities: Identify your essential expenses, such as utilities, groceries, car payments, and mortgage/rent.

• Give Your Money an Assignment: Assign amounts to each necessity.

• Cut Unnecessary Expenses: Identify and eliminate non-essential expenditures.

Scripture: Precious treasure and oil are in a wise man's dwelling, but a foolish man devours it. Proverbs 21:20 (ESV)

Prayer: Lord, grant me the wisdom to manage my finances effectively. Help me to discern between needs and wants, and give me the discipline to stick to my budget. Amen.

2. Don't Be Foolish, Set a Monthly Financial Savings Goal

Many people don’t know where to start when it comes to savings. They often think I don’t make enough or I make just enough and feel they can't afford to set aside funds. If that’s you, you need to shift your mindset and closely examine your monthly financial situation with an open mind to see what can be cut to make room for building a savings account.

Practical Steps to Start Saving:

• Cut Daily Costs: If you buy Starbucks or Dunkin coffee for $5-$9 every day or 4-5 times a week, consider cutting back and opting for a regular coffee at $1. Better yet, consider making your coffee at home. Save the difference. These small changes can add up quickly. Do the math.

• Review Leisure Expenses: Cut down on dining out. We often tell ourselves that it's cheaper to go out to eat, which is not always true. Other areas to cut back are going to the movies or going out every weekend. Sacrificing these activities can help you set aside funds for your savings. Do the math.

• Start Small: Whether it's $5 or $50 a week it can add up over time. Do the math.

• Automate Savings: Make it a priority to save money every time you get your paycheck. Set up automatic transfers to your savings account each month. Do the math.

Scripture: For which of you, intending to build a tower, does not sit down first and count the cost, whether he has enough to finish it. Luke 14:28 (NKJV)

Prayer: Lord,  I ask for Your guidance in helping me set aside money for the future. May I be diligent and disciplined in my savings efforts. Help me to see the value in small sacrifices and to trust that these savings will grow. Teach me the importance of setting aside funds for future needs and emergencies. Amen.

3. Minimize Using Credit Cards or Be a Slave to the Lender

Debt is a major issue in our society. We've been conditioned to believe that credit card use is a part of financial life or glamour and that spending money we don’t have is okay, burdening ourselves with repayment later.

For the rest of 2024, minimize your use of credit cards and rely on cash as much as possible. Don't buy something if you don’t have the money to buy it. Save up and use cash.

Some people like using credit cards with cashback or travel rewards, but you should only consider using a credit card for this purpose if you have already set aside money for groceries, gas, and utility bills. If managed correctly, this can be a disciplined approach. I have found that this only works if you are disciplined and have healthy spending habits.

How to Minimize Credit Card Usage:

• Use Cash: Only spend money you have in the bank.

• Track Expenses: Record where your money goes to understand your spending habits better.

• Rewards Programs: If you must use a credit card, use one that offers cash back or travel rewards and limit it to essential expenses like groceries and gas.  Be sure you have the money to pay it off immediately. The key is to pay off the balance each month.

Scripture: The rich rules over the poor, and the borrower is the slave of the lender. Proverbs 22:7 (ESV)

Prayer: Lord, help me to resist the temptation of spending money I don’t have. Give me the strength to live within my means and to make wise financial choices. Give me the patience to save for what I need and the discipline to minimize my use of credit cards. Amen.

4. Plan on Paying Off Your Debts

If you have credit card debt, whether manageable or overwhelming, develop a strategy to pay it off. Don’t go through the year without a plan for debt repayment. Being free from credit card debt is not just a financial goal. It's a liberating experience that brings a sense of freedom and control over your life.

Tips for Paying Off Debt:

• Side Hustles: Take on side hustles that fit your schedule to provide additional income specifically for paying down your debt.

• Prioritize Payments: Focus on paying off high-interest debts first.

• Debt Consolidation: If possible, consolidate your credit card debts to benefit from lower interest rates. Be sure to do your own due diligence before taking any action. Research. Research. Research.

Scripture: The wicked borrows but does not pay back, but the righteous is generous and gives. Psalm 37:21 (ESV)

Prayer: Lord, grant me the perseverance to pay off my debts. Show me opportunities to increase my income and the wisdom to manage my finances wisely. Amen.

5. Invest in Your Financial Education

The more you know, the better decisions you can make. Take advantage of the wealth of resources available to educate yourself on personal finance. If managing your finances still feels overwhelming, don't hesitate to seek professional help. Financial advisors or coaches can provide you with strategies tailored to your situation.

• Apps: Many apps are available for tracking expenses and budgeting daily, weekly, or monthly. Many apps notify you if you're off your budget target so you can get back on track.

• Books: There are numerous books on personal finance that can provide valuable insights.

• Online Courses: Many platforms offer accessible or affordable budgeting, investing, and financial planning courses. Check with your financial institution.

• Financial Advisor/Coach: Consider consulting a professional for personalized advice.

By implementing these tips, you can take significant steps toward a healthier financial lifestyle in 2024. Remember, financial health is not just about making money but also about managing and planning for a secure and prosperous future. It's also about being inspired to take control of your financial future.

Scripture: The heart of the discerning acquires knowledge, for the ears of the wise seek it out. Proverbs 18:15 (NIV)

Prayer: Lord, grant me the curiosity and determination to educate myself about finances continually. Lead me to the right people who can help me achieve financial stability. May I be open to learning and growing in my financial stewardship.

As you move forward into 2024, remember that financial health is a journey, not a destination. Be patient with yourself and stay committed to your goals. You can build a healthy financial lifestyle with prayer, planning, and perseverance.

Let's finish 2024 strong.