We all (well, most of us) have something to pay off, whether its school, a car loan, a new home you’ve purchased and so on. When it comes to financial situations, they can become quite discouraging and much of a struggle to even look at how much you owe. I’m an advocate of tackling and mastering all areas in our individual lives, and one very important area we will be discussing is “How to Master Your Money”. It is important to be financially sound and stable; reason being because you do not want to be somebody that is always borrowing and never having enough to pay back. Proverbs 22:7 says “The rich rules over the poor, And the borrower is a servant to the lender. Other versions say a “slave” to the lender. The person or thing you now owe becomes your master.
Contemplate on some financial decisions you’ve made, and ask yourself if it was a smart idea to have purchased the things you did. I sure made BIG MISTAKES as a young man with my money lol. But everything becomes a learning lesson and is supposed to make us wiser. I’m glad I made most of my financial mistakes while I was still living at home, that saved me big time!
Here are 5 ways I came up with to master your money and take control over your income.
- Have debts? Pay it off Buddy
The mistake many of us make is that, by the minimum payments were paying on our credit cards, we think it becomes alright to purchase more and more things. But that just increases the amount of time it will take to pay it all off and increases the interest rate. When you have things like a car, and student loans to pay off, don’t take those lightly. If you have other things you have to pay for, especially on your credit card, pay it off and have that liberty of being free from a monthly payment coming out of your account. It may not sound like anything special but that gives you the liberty to have money for yourself.
- Don’t use your credit card if you know you cannot pay it off.
If you know you can’t pay off what your buying in the next 2 months, don’t purchase it. Live within your means and don’t always go for the things you want. Go for the things you need.
- Live a reasonable lifestyle
as I said, Live within your means, and if possible live below your means. It is only temporary and there will be a time where you will be able to get the things you want and go the places you’ve always thought of traveling to. It takes time and planning, though it seems as if it may never happen, persevere and have in mind that you will one day you can save all you want, give all you want, and spend when you want.
- Educate yourself on finance
Deep down, everybody thinks they know everything there is to know about how to save and spend, but reality is we know nothing until we actually study the topic. There are many things we must educate ourselves on in order to save, and invest correctly. There are many books and authors that can educate you on the topic. A few names would be Dave Ramsey, Chris Brown (not the singer lol), and Rachel Cruze.
- Budget your money!
Budgets are super super super important. It helps you to keep track of all your money and what your spending on. When you budget your money, you are in control of your money and are basically paying for the necessary things you ought to pay for. For instance, my budget consists of school, car, insurance, tithes and rent payments. Once these payments are down, I put a specific amount in for saving and whatever is left is for me to spend. When you continue a consistent pattern of this, you will see that you actually have control over your income and where it’s going, it’s a really good feeling. Especially for a young Christian man like me.