If your goal is to learn how to be rich, you might be on the wrong page. If you ask me if I have already mastered the road to financial freedom, the answer is "No, I have not.". Maybe just like you, I thrive every day with my finances. Here are baby steps to get out of the financial freeDOOM.
The tips I'm about to give you may or may not work for you. Some you'd probably raise your eyebrows on. Am not saying you do all of them. Am saying you give them a thought. It has been working for me, maybe it will work for you too.
Do this in order -
1. Give God His.
Tithing is a Biblical concept about giving 10% of your income to God's work. Don't raise that eyebrow yet. Give it a thought.
Below are two Bible verses about it. You may search the net for more.
Make an offering of ten percent, a tithe, of all the produce which grows in your fields year after year. - Deuteronomy 14:22
And my favorite tithe verse of all -
Bring all the tithes into the storehouse,
That there may be food in My house,
And try Me now in this,”
Says the Lord of hosts,
“If I will not open for you the windows of heaven
And pour out for you such blessing
That there will not be room enough to receive it.
- Malachi 3: 10
This is the only time the Lord has invited us to test Him. Tithing is not a show-off of what one can give. God doesn't need our money. He gave us our jobs. He created the heavens and the earth, for crying out loud! But why is He asking for the 10%? It is a test of faith and trust just like when Abraham was asked to sacrifice his son, Isaac. What kind of a father would do that? It was one of the most painful scenes from the Bible but he followed because he trusted God.
God is smart. He knows it will be a big struggle for us to offer Him 10% of our hard-earned money to what? the church? How sure am I it's going where it should go? Can I just give to the poor? 10%? That's already how many cans of milk for my baby? But am saving up for a travel! But I haven't bought myself a new pair of shoes in a long time!
See how hard it is? Tithing is a result of faith. And yes! It is 10%, not 9.9% or less.
Why don't you try it and test God?
2. Pay yourself.
What? Pay ME first? But I have tons of bills to pay!
Yes! Pay yourself! You work 9 hours a day in a limited budget. You deserve to be paid. You might be the family's bread winner and I think it's noble to be one but you gotta love yourself so you don't burn out or get fed up with what you're doing.
By paying yourself, I don't mean going beyond your means. Giving yourself that promo massage or foot spa is enough. Buy yourself a new underwear or a shirt or a hanky or a pair of socks...then stop. Remember, it has to be within your means!
3. Pay your bills and your needs.
You have to stay alive so manage your utility bills well. If you have extra money now and your electricity isn't due until after the next payday, pay ahead. These companies keep a record and offset early payments from your new bill. Just because it is not due doesn't mean you can't pay it when you can, especially when you know it is something you will continuously use anyway e.g. water, net, electricity etc. (For mortgages, ensure the company doesn't charge pre-payment penalty.)
If you have a credit card and you can, pay off your credit card every month. If you think it's hard, go for the easier - pay more than the minimum. Much better if you ask your credit card company about their payment allocation method and if there is a way that your extra payment goes to the interest. Ask.
Overall, planning is the key. Plan your expenses at home and work it within your means.
4. Pay your friends.
Did you borrow money from your trusted friends? Friends who may also be struggling financially but did not ever have second thoughts lending you money? Pay them. It is your obligation. It is your word. Your financial freedom is best enjoyed when the people around you know you deserve it. Don't flaunt your new Iphone when you haven't even paid the people you are flaunting it to.
You don't have to pay in full. You can do it slowly. Talk to your friends. They will surely understand. P500 (or less) a month until you pay off everything. Of course, you have to mean it! When you do this, people appreciate your effort. The next time you will need some cash urgently, all of them will lend a hand.
Just because you're friends doesn't mean you don't pay what you owe from them. If that's your mindset, you have a distorted view of the friendship.
5. Pay your other debts.
If you still have old bank debts. Pay it slowly. Coordinate with them to ask for an affordable payment scheme and if they can lower and freeze the interest. I did this with one bank I owe money from and am now halfway. Yay!
6. Share.
Cook for a friend. Donate an old shirt to charity. Share a sandwich. Share a book. Share a candy. Treat your mom to a foot spa. Buy your sister a new hanky. Give the janitor a box of biscuits. Hug your dog or your friend's cat. Not everything is in cash. Yes, blessings come back tenfold.
7. Save.
Most people don't save if there's not much left. Just because you can only save P50 a month, after settling all five above, doesn't mean you will give up the idea. Save within your means. After all the paying, you can save more.
Save in whatever way you can - piggy bank (let go of that idea that it brings bad luck, you get sick because of health issues not because of saving money and having the discipline to do it), open a bank account (deposit whatever you can, be it a small amount), sign up in reputable financial company that will grow your money (you have to think this over a hundred times). No more excuses! Save!
I hope this helps you a bit. Don't rush! Remember, baby steps! We'll get there.
I have more tips for you on the next entry.
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