Article by Judy Mosley

For my family, this year has proved to be a lesson in money management.

 

Through the recession, we made a plan for our money to ensure that our basic needs were met.  Our bills were paid, but we often had to forgo the fun spending to make sure that happened.  Instead, we created our own fun by using our imagination and deciding what we really wanted to do when did get a little extra “play” money.

 

As my husband’s hours increased, so did his paycheck.  And during the first few weeks, we started going out again, and doing a few nice little things for each other.  But we quickly noticed how fast we would run out of “play” money. By the end of the month, we started feeling confused about where our money was even going.

 

We realized that if we wanted to get the best out of our money, we had to be more intentional with it.

 

Whether you have a lot or a little, money is something that everyone must learn how to handle.  If we don’t discover how to use our money to create a more fulfilled life, it will be squandered in little ways, leaving us wondering where it went.

 

Here are a few things that my own family has been learning in the process of handling our own funds. 

 

Know where your money is going.

Keep a journal for a week.  Write down every purchase, the reason for it, and whether or not it was really necessary.  Be honest with yourself.  Are you spending within your means or outside of it?  Look at what you are spending your money on and ask yourself what you could willingly let go of?

 

Prioritize your money.

This is where a budget serves its purpose.  There are many great examples of budgets online or in money management books.  If you need to, create one of your own that will fit for your particular situation.  The goal is always to save and spend what you have, not to spend what you hope you will have.

 

Accept the path that your money must take.

Last winter, all of us had to give up some activities that we wanted.  My husband, for example, had to give up the prospect of Jujitsu classes, that were an hour away and quite expensive, because there were other bills and basic necessities that had to be taken care of.

 

But within this past month, he found Judo classes that were only 20 minutes away and that are less expensive.  Whatever it is that you have to let go of, remind yourself that it won’t be like this forever, especially if you are lowering any debt you might have … and that when you let go of what you thought you really wanted … something better is likely to come along.

 

Beware of the Money-Snatchers.

It’s the $1 coke, the one-day sale, or the quick trip through the drive-thru.  It’s the little purchases that slowly leak out any reserves that you have for yourself.  A question that my husband and I have started asking ourselves, before any purchase is: “Can I afford this”?  If we don’t know what our budget says, at that moment, then we don’t buy it.  This is also a reminder to us that we should never make a rash decision about our money, even if we think we really need what we want to buy.

 

Give your money a goal.

If your bills are paid and you have some extra to play with, figure out what it is that you

want to do with it.  Eating out is fun and relaxing, but can feel meaningless if it takes up all your “play” money.  Give your money a goal.

 

What do you really want to do?  Dig up your dreams and start to make them reality.  Make an envelope and set aside cash each month so that you will be moving in the direction of that dream.  It can be anything from music lessons, a trip to Hawaii, or a fabulous dress.  Whatever it is, post pictures or words where you can see them so that you will be less likely to compromise for something less.

 

When you make conscious choices about where your money is spent, you feel better about where your life is headed.  You will feel more secure and free to live the life that you want.  It’s the little steps that you can take, to change your whole life.

 

Live intentionally with your money and discover what marvelous things can happen.

 

Money never made a man happy yet, nor will it.  There is nothing in its nature to produce happiness.  The more a man has, the more he wants. Instead of its filling a vacuum, it makes one.  If it satisfies one want, it doubles and trebles that want another way.  That was a true proverb of the wise man, rely upon it; “Better is little with the fear of the Lord, than great treasure, and trouble therewith.“

-Benjamin Franklin

 

It is said that for money you can have everything, but you cannot.  You can buy food, but not appetite; medicine, but not health; knowledge but not wisdom; glitter, but not beauty; fun, but not joy; acquaintances, but not friends; servants, but not faithfulness; leisure, but not peace.  You can have the husk of everything for money, but not the kernel.

-Arne Garborg

 

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