Hey, listen! Making it rain doesn’t necessarily have to be in the club! It could be at Macy’s One Day Sale, impressing your friends, or simply spending money that should have been set aside for bills.
One of my favorite passages in the Bible reminds us to consider our ways! Haggai 1:6-7 reminds us that although we make a lot, we are unable to keep any of it.
So, if in 2014 you found yourself “making it rain” in all the wrong places, here are a few tips to get a handle on your finances for 2015.
If you simply hate to budget
Hey, we all know we need to budget but the mere reality is, we simply don’t do it! But if you are a person who simply hates budgeting, consider using my A-B-C plan for budgeting:
A – Automate At each pay period, have a set amount drafted into a savings account or any account that will take an “Act of Congress” to withdraw from, if you simply lack discipline.
B – Budget for Bills Determine your total monthly bills and set aside money in your bank account just for your bills. For example, if your bills total $900 for the month, have that money ready and available to make certain your bills are paid timely.
C – Cash After you have set aside money for savings and budgeted for your bills, use the remaining cash for everyday spending.
This way before you begin to spend, you have already saved money and paid your bills for the month, thus reducing the chance to spend beyond your means.
Have a “come to Jesus” moment to get out of debt
If you are swimming in credit card debt, it is time to have a “come to Jesus” moment. Take time to be real with yourself. List each creditor you owe and create a plan to get out of debt. Also, get creative. Think of ways to create additional revenue streams to apply towards your debt on a consistent basis.
Invest in your most important assets – your kids!
If you are a parent, guardian, or simply have a love for the kids, consider setting up a 529 plan. This plan is also known as a qualified tuition plan. It allows participants to set aside money in a tax deferred plan where earnings grow tax-free.
The START saving program is available in Louisiana. This program allows individuals to take a tax deduction on their state tax return. In addition, the program also offers earnings enhancement, where the state matches your contributions based on your income.
Remember: your choice, your future!
Kemberley Washington is a professor at Dillard University and certified public accountant. She writes a personal finance blog at Kemberley.com. Follow her on Facebook or connect with her Twitter. Like, Love, Tweet or Share this post!