Smart Financial Management

I really loved the 3 Principles of Financial Management which is taught by John Wesley :

1. Earn as much money as we can get. Surely, with a note: making money with a right way and do not inflict a loss to others.
2. Save as much money as we can save.
3. Give as much money as we can give.

Now ... Does anyone agree with the three principles above?

If you agree with me, you can continue reading this article. We all have a responsibility in managing our own finances. Can you imagine what will happen to us, when we become consumptive and disorganize in financial management. I can say this because many things I had learned in my life and I had also ever failed in this case. Therefore, I also wanted to share to everyone about how to manage money properly.

Of course, the thing that underlies why we must learn about the correct use of money, is to demonstrate our responsibility and gratitude to our Lord as the Blessing Giver. Do not forget also, that in general our productive time to work as a human being is between the ages of 20 to 50 years old. Though it is not an absolute method- but it is a common thing which is always happening to humans. Past those ages, if we are smart in managing our finances - generally we will enjoy our retirement and enjoy it with our children and grandchildren. If we fail, most people who past those ages, would still continue to work until becoming old, sickly and could not work anymore.

Here are suggestions or tips from me about how to manage finances properly. You can choose to apply them or not. And after you have applied and be successful, do not forget to contact me and tell me your success stories.

First of all, make your monthly budget, ranging from the cost of food, a house rent or mortgage, education, transportation needs, telephone or electricity bills, and other routine needs. So when you receive your salary or income, immediately separate your money to fulfill these requirements into each different envelope. This should be done in order to limit us to attract more money from our ATM cards.

Learn to restrain yourself in buying items outside the "Monthly Shopping List", even if there is a discount or a massive sale at your favourite supermarket.

Then, enter the list of things we want to buy into the next "Monthly Shopping List". Sort the list based on a priority scale, so that critical and urgent needs can be firstly fulfilled.

The second step is set aside 10% of our income as our tithing money. This we do as a form of love and our obedience to God. In addition, this is the good 'seed' that must be immediately we sow.

Third, also set aside a "seed" which is purposed for us to sow or to share with people in need. We must have a principle as 'person who manages the blessings' or stewardship, not as the owner.

The fourth step is set aside money for savings. Set aside twenty percents from our salaries. I.e., ten percents which purposed for savings in difficult times, when ill or lean years, or only as a special savings. For that, try not to use an ATM card for this special savings, so we are not easy to take money from these. These money should only be taken at a very difficult time, or if we want to start a side business to increase our income.

Then the next ten percents are collected as a reserve for capital to be invested until a few years to come. This we can use to fund our retirement. This money can be saved in the form of insurance as a term investment protection, so that in the ripen days we did not live under the mercy of others.

The last step we can do is investing the money. The habit of savings is supposed to go in our financial planning. With always saving our money little by little up to three to ten years, then we can make an additional income. After that, find the idea to double the money. Then manage that money in business which is in accordance with our knowledge and our hobbies.

After all the steps above we do, then we will be able to enjoy our work. Of course, all the above steps can not be instantly making, but it takes time, perseverance and an unwavering desire to do it. So do continually until it was finally generate profits for you and your family. Understand the simple lifestyle, which does not mean we have to live in deprived, but live which can control the situation and not go along with the world's lifestyle that consumptive and glamorous. Learn to therewith to our needs, because "financial freedom" certainly more important than exhibit the 'social status'.