1.You have at least 6 months of expenses in a savings account.
Calculate the amount of your monthly expenses it takes to live on like rent, insurance,
utilities, food, phone, gas, clothes, etc. and multiply by 6. Murphy’s Law is
about WHEN emergencies happen, not IF they will happen.
2.You have no debt except your home mortgage. Being debt free is
the new normal so get with the plan and pay of all those pesky high interest
debts that strangle you each month at bill pay time. When you are debt free,
YOU control where your money goes.
3.You have the right type of life insurance in place at 7
times your annual gross salary. Leaving your spouse and family unprotected by
not having life insurance, will be devastating in the event you die. This is
especially critical if the wife has not worked a career and is suddenly catapulted
into having to provide for the family in the case the husband dies.
4.You are investing a portion of your money in a retirement plan
or other ways plans like a ROTH IRA. Once you are debt free and have a fully
funded emergency savings account, investing personally is critical. Plan to
invest around 15% of your annual income each year.
5.Implement a zero based budget each month. That means every dollar
you earn has a name to it each month. Don’t leave miscellaneous dollars
floating around in the checking account with no allocation to it; it will disappear
with you not realizing it. If you make $1000 each month, then have a plan to
spend $1000. Have a plan for every dollar before the month starts and follow
the plan.
For more information on how to handle money God’s way,
register for Financial Peace University near you or go to cabcwaco.org/fpu. It’s
a 9 week comprehensive study about how to manage your money. FPU shows you how
to save, become debt free, purchase a home, what type insurance to have, and
how to look for bargains. FPU works!
No comments:
Post a Comment