1. Plan – Every dollar needs to go somewhere and do something for you today, tomorrow or down the road.
2. Tithe/Give – Giving away 10% of your income (whether it’s tithing, giving or donating) has positive psychological effects on our view and action of money.
3. Save – Saving 10-20% of your income in emergency funds, investments, retirement, legacy planning, etc. Putting these dollars to work for you now will help you when you need them down the road. Emergency spending (new tires, new furnace, etc.) is much less stressful when you saved for it months ago. Last time I checked, retirement dollars can’t be financed. It may feel like forever away, but one day you’ll wake up at 65 and be wanting your dollars to work for you, not you still working for your dollars.
4. Save in TWO places! – Build an emergency fund containing 3-6 months of family savings. PRETEND THIS DOESN’T EXIST until you need it. Also, have a flexible/fluid Savings account. This is where you are putting dollars aside you know you are going to spend (vacation in July, 40th birthday bash in March, Christmas 2024, etc.)! It will feel so good to spend those dollars and take those trips when you have the dollars set aside.
5. Protect – Make sure your income is protected with a solid disability insurance policy. This is your biggest asset! If you have loved ones and little ones depending on you, make sure you have the PROPER amount of life insurance in place.
6. Consult a professional you trust. There’s a lot of noise out there – TikTok experts, clickbait news headlines, that one uncle you avoid at Christmas who knows everything. You have a professional fix your car, make sure you are talking to someone you know and trust about these things to help you as life and finances become increasingly complex.