Q1.When should you start managing your finance and why?
The sooner you start managing your finance, the better! Don’t wait until you reach a certain age or start a family, the best time to start was yesterday and the next best time to start is today.
If you are earning an income, God trusts you to take care of what He has blessed you with. When it comes to finances, the sooner the better, start to save or invest now and let it have time to grow.
Q2.What are some of the benefits of managing your finance?
God promises us that when we do well with what He gives us, He can trust us with more. As you plan out your finances, you can be sure to have more peace and sleep better. Exciting thing to remember is that as you pay off debt and start saving or investing, you will be able to build more wealth and be a great blessing to others!
7 Steps To Financial Freedom
Based on the “Total Money Makeover” by Dave Ramsay.
“Live like no-one else now, so that later you can live, and give, like no-one else.” -Dave Ramsey
(1 Corinthians 4:2 NIV) Now it is required that those who have been given a trust must prove faithful.
(Matthew 25:23 NIV) His master replied, ‘Well done, good and faithful servant! You have been faithful with a few things; I will put you in charge of many things. Come and share your master’s happiness!’
STEP 1. Get A Plan For Your Money – Budget Each Month
“A budget is telling your money where to go, not wondering where it went!” -John Maxwell
“If you aim at nothing you will hit it every time” -Zig Ziglar
(Proverbs 21:5 NIV) The plans of the diligent lead to profit as surely as haste leads to poverty.
(Luke 14:28 NIV) Suppose one of you wants to build a tower. Won’t you first sit down and estimate the cost to see if you have enough money to complete it?
STEP 2. Save a Beginner Emergency Fund
(Proverbs 21:20 NIV) The wise store up choice food and olive oil, but fools gulp theirs down.
STEP 3. Get Out of Debt – The Borrower Is Slave To The Lender
(Proverbs 22:7 NIV) The rich rule over the poor, and the borrower is slave to the lender.
(Proverbs 6:1-5 NIV) My son, if you have put up security for your neighbor, if you have shaken hands in pledge for a stranger, (2) you have been trapped by what you said, ensnared by the words of your mouth. (3) So do this, my son, to free yourself, since you have fallen into your neighbor’s hands: Go—to the point of exhaustion—and give your neighbor no rest! (4) Allow no sleep to your eyes, no slumber to your eyelids. (5) Free yourself, like a gazelle from the hand of the hunter, like a bird from the snare of the fowler.
STEP 4. Save A Full 3-6 Month Emergency Fund
(Proverbs 6:6-8 NIV) Go to the ant, you sluggard; consider its ways and be wise! (7) It has no commander, no overseer or ruler, (8) yet it stores its provisions in summer and gathers its food at harvest.
STEP 5. Invest For The Future
(Matthew 25:19-21 NIV) “After a long time the master of those servants returned and settled accounts with them. (20) The man who had received five bags of gold brought the other five. ‘Master,’ he said, ‘you entrusted me with five bags of gold. See, I have gained five more.’ (21) “His master replied, ‘Well done, good and faithful servant! You have been faithful with a few things; I will put you in charge of many things. Come and share your master’s happiness!’
STEP 6. Steward God’s Blessing
(Deuteronomy 8:11-14 NIV) Be careful that you do not forget the Lord your God, failing to observe his commands, his laws and his decrees that I am giving you this day. (12) Otherwise, when you eat and are satisfied, when you build fine houses and settle down, (13) and when your herds and flocks grow large and your silver and gold increase and all you have is multiplied, (14) then your heart will become proud and you will forget the Lord your God, who brought you out of Egypt, out of the land of slavery.
(Proverbs 24:27 NIV) Put your outdoor work in order and get your fields ready; after that, build your house.
STEP 7. Build Wealth, Be Incredibly Generous and Leave A Legacy
(2 Corinthians 9:7 NIV) Each of you should give what you have decided in your heart to give, not reluctantly or under compulsion, for God loves a cheerful giver.
(Proverbs 13:22 NASB) A good man leaves an inheritance to his children’s children.