Step 1 - Spend Less Than You Make
We are on step 1 of 8! You are filling up your financial tank one mark at a time. By the time you have completed all 8 steps, you will have a financial foundation that will allow you to pursue whatever God has placed on your heart.
But before you go pursuing your dreams, you need to get your money right. You need a solid financial foundation.
Last week, you faced the music. You guessed what you thought you were making and spending each month, and then I asked you to download RocketMoney. This app has made my budgeting life so much easier! It connects to my accounts so I can see exactly what I am spending and earning each month, and it lets me know whether I am on track with my budget.
This week, we need to begin creating a balanced budget so that you can spend less than you make. If you’re not familiar with that term, here’s a simple definition: A balanced budget is when you spend less than or equal to the money you make. In other words, expenses and income are balanced.
Most Americans live with an unbalanced budget. They spend more than they make. But that won’t be you. Step 1 in creating a healthy financial foundation is spending less than you make.
You don’t want to go into more debt every month. This may sound far away from your current reality. You may be very used to living in an “unbalanced budget” reality. I have been there, and it isn’t fun. But here’s what I’m asking you to do today: take one step.
Take one step towards a healthy financial future. If you haven’t downloaded RocketMoney, do it today. If you have downloaded the app, I want you to start creating a budget in the app today. It is Step 2 as you begin setting up your account, and it is very easy to do!
At the end of the budgeting process, you'll be able to add categories to your budget. This is where you start crafting where you should and shouldn’t spend. Once you have selected your categories and placeholder budget line items, see what your projected savings for the month is. If it's negative, you don’t have a balanced budget.
I want you to find the two or three problem categories of your budget that just seem way out of whack and a lot more than you anticipated. Those will be the low-hanging fruit we'll start fixing next week.
This is going to take some time. I know it can feel overwhelming and like a waste of time, but I promise you, crafting a balanced budget and spending less than you make is step one toward financial freedom for you and your family. This time will be well worth it, I promise.
Next week, I’m going to begin helping you determine how to fix a couple of those problem parts in your budget. This week, I just want you to download the app, build a budget, and find the two to three problem categories you need to address to balance your budget and get you on your way to a full financial tank!
To read all these steps and hear stories about how they work in real life, you can get your copy of INCREASE from The Wildwood Bookstore downtown Hastings or online on Amazon. If you choose to shop local at Wildwood, you’ll receive a free copy of my children’s book, The Treehouse Dream, as a thank you!
Thank you in advance for purchasing a copy of INCREASE. Every purchase will help further this message of stewardship to our community and beyond.
Zach Santmier is the owner of Trumble Agency, Inc. and the author of the personal financial course, Increase. He focuses on helping families escape paycheck to paycheck living so they can freely pursue their ideal future.
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