Start Where You Are

No matter what your finances look like right now, you can start where you are. You still have a chance to have a bright future and your family deserves an opportunity to live that out. It take work and discipline, but you can do it, if you commit to do so.

Your plan starts with a budget. It can be as simple as writing it down in a little notepad or journal or as sophisticated as using a computer spreadsheet or using a budget app. I do all three.

You’ll need to list income from all sources. Then you’ll deduct the amount you tithe, if you tithe and the amount you give, if you give. Giving is not just a biblical principal but representative of a heart of abundance (not necessary a wallet of abundance). This category should be 10%.

From your income, next deduct an amount for savings. If you are like most Americans, you haven’t been consistently saving over the course of years. If you are, great! If you aren’t, start now. This category should be 10%, if you can afford it. If you can’t, you can start small and build up as time goes on. Even $100, $50, $20 a month will build up over time. Some financial experts, like Dave Ramsey, says $1000 is a good starting point and that’s what I did and recommend.

Now, from your income, deduct your priority bills. These are the things that would put you in a bad spot if you did not pay them (things like you mortgage or rent, car payment, insurances, etc.). Any money left over is for incidental spending. First, go through your list of current incidentals. What things can you get rid of (even if only temporarily) to help free up

some money? Can you pause or stop some of your subscriptions, for example? Can you pull back on the restaurant/grocery budget?

With any surplus you have, take care of these things. Make sure you have basic protections in place. That would be an emergency fund, life insurance, and a will. These things are important because life happens and these thins have to be in place before you need them- or they will result in financial hardship for your family.

A will can be simple, but I recommend using a legal service or attorney. Life insurance should be secured and then added to your list of priority bills. You need life insurance outside of work, because if you lose your job as hundreds of thousands of people did in 2020, you will have no insurance coverage at all. So, that’s a priority bill. If you have to cut down even more on incidentals, do that.

Any surplus that remains you can throw towards your 3-6 month emergency fund (which is the long term goal) and/or throw towards debt elimination (which is the long term goal). You can decide what percentage of the surplus funds you want to put towards each of these things, but both are important.

A Final Word

For some of you, having a plan is all you need.  For others of you, you will benefit from being connected to like minded folks. So, find blogs, podcasts, and such that can help you stay motivated. Still others of you, will benefit most from work with a financial professional (like me), who can walk with you through the process and provide real time and personal cheerleading and support.

Either way, you should feel good about owning this part of your life. You are doing your family a great service. Just start where you are.