[Better Money Challenge – Week 4]
INTRO
As we continue through this challenge, let me commend you for setting aside time for learning and taking action. It is so important to make your very best choices today, especially if you want a better tomorrow.
Last week, we explored the areas of “Saving and Investing”. Remember the primary difference is length of time (duration). Saving is often short-term and for an item you plan to purchase over the next year or less. Investing is long-term and will often be locked away for ten or more years.
This week, we will be focusing on “Spending and Maintaining”. Now we may feel a little pull as our resources begin flowing away from us. Never forget, you are in the driver’s seat and get to choose where your resources go.
SPENDING
Likely you have various expenses which are all very important to you. My favorites are food, clothing, transportation, shelter, utilities, etc. (the basics). Also, different products, services, memberships and more demand continual funds to stay active.
The needs, wants and desires of your household should be considered your priority. What each member of the family deems as important should be on the list. Some things may not be feasible, depending on the cost (your decision).
Budgeting is the art of listing out all of the places where you want your money to go. I strongly encourage you to do this before you start spending your paycheck. Tracking is making certain resources go where you have decided. And not running out of money, at least until more flows to you again.
MAINTAINING
Spending is ongoing and seems to never end. Maintaining (not replacing) helps to slow that down (so you can keep some more resources). Consider that you have the option of polishing, refurbishing, etc. (so as to extend the life of some or most things).
Your home and everything connected to it can and should be maintained (to the best of your ability). Maybe certain things you do yourself, while other tasks are for hired professionals. Whether you own or rent, your home is important to keep up.
Transportation is another critical area for maintaining. Your vehicle most likely is expected to take you to and from work. And church, and the grocery store, and other places. Very important to keep it reliable and street legal.
TAKEAWAY
Spending is usually ongoing and continual replacement. This is where you and I keep setting aside money for new purchases. Remember to keep all the most important things stocked (kitchen, bathroom, etc.).
Maintaining involves items you already have and would like to hold on to for some time yet to come. Consider electronics, furniture and other things which are designed to last for years (with a little care).
Knowing your numbers is so important. Budgeting, clearly deciding where every dollar will go, is the first step. Tracking, making sure most important things are paid while not running out of money, is your second step (each month).
Under the Shadow of the Almighty” (Psalm 91:1),
Shawn Episcopo