The time we’ve all been waiting for is here!
No, we’re not talking about Christmas shopping this time. It’s time to fall back! Yes! That means 1 more hour of sleep, 1 more hour of TV, 1 more hour of (you fill in the blank).
It’s tempting to take that extra hour for granted, but should we? Couldn’t we use that 1 extra hour to do something productive with our finances?
Yes! So, this week we encourage you to use your extra hour to create a spending plan. Not what you were expecting, huh? Well, with the Christmas season upon us already, what better time than now to get your finances in order so you won’t be scratching your head in January wondering where your money went?
Here are some simple steps toward getting your spending plan completed.
Pray and Prepare for November
Let’s start with asking God how He’d like you to spend your money for the month of November. You can consider December also since it may take some extra time to make sure you have Christmas gifts in time.
Next, prepare a list of all of the things you want to buy (and who you owe) in November. But be sure to cover your bare necessities first in this order:
- Tithing (we believe in giving 10% of your gross income)
- Food (excluding dining out)
- Shelter (including utilities)
- Transportation (including gas and insurance)
- Clothing (basic clothing, y’all)
Then, create a list of all of the other categories you plan to spend. This includes any monthly debt or bill payments followed by areas such as entertainment and Christmas gifts. If you plan to spend the holidays out of town, be sure to set aside money for that time.
Assign Every Dollar A Job
Now that you have all of your categories written down, let’s assign an amount to each of them. Be prudent but also realistic. You don’t want to allocate $25 for vacation knowing you’ll really need $125. You’ll shoot yourself in the foot.
Make Sure Your Income Minus Expenses = Zero
Wouldn’t it be nice if we could just make a list, check it twice, and get whatever we want? Well, it doesn’t work like that. We have to do some math here, y’all.
Now that you have all of your categories with amounts assigned, you’ll want to subtract your expenses from your income. Basically, the amount you get from your paycheck (income) minus what you anticipate to spend that check on (expenses), should equal zero. Simply put, Income – Expenses = 0.
If your expenses are higher than your income, now’s the time to get creative (reduce expenses or increase income). There are plenty of seasonal jobs out there. You just have to be willing to work, qualified and flexible. Consider working at a place you like to shop unless you think you’ll go overboard spending. Another consideration is getting paid to shop for others. Some people really don’t like to shop (Tiffany is this close to being in that number).
If you find that your income is higher than your expenses, think about other ways you can spend it. Giving and depression are at an all time high at this time of year, so consider those less fortunate than you. Imagine how the holidays feel to those who’ve lost loved ones or lost things near and dear to them. Other possibilities are dumping more money on your debts, building up your emergency fund or saving for known, upcoming expenses.
Now, that we’ve covered how to create a spending plan, take the time this week to get your financial house in order before all your “guests” arrive for the holidays. Remember, it’s not so much about how much you make, but what you do with you what you make. Control your wallet so it doesn’t control you.
Jason & Tiffany
Wallet Coach