Investing and Saving for the Rainy Day (3)

August 6, 2019

Nuggets for Saving
▪ The Spirit can put to death the desires of the flesh (Rom. 8:13)
✓ Irresponsible spending is a “spiritual” problem
▪ We save against future “evils” (Prov. 22:3, 27:12)
▪ An emergency fund of at least 3-6 months’ income is prudent
▪ Know why you are saving
✓ You need an emergency fund to cover potential major expenses. They should be expected and they are expenses like:
▪ Major electrical, plumbing or furniture issues at home
▪ Medical bills and other uncovered health packages
▪ Family exigencies- financial assistance to a relative etc.
▪ Track how much in savings is for a particular purpose
▪ Make it hard to access your Savings Account
✓ Place a monthly standing debit order on your primary account(s) to the savings account at a bank account hard to access
✓ Place a monthly standing debit order on your primary account(s) to invest in the stock of a company with very strong fundamentals
▪ Ensure to save a minimum of 10% of your annual income

Plan with Your Surplus
1. God’s plans never fail (Isaiah 14:27; Ps. 33:11), so we need to try to understand God’s will (Eph. 5:17; Jer. 9:23-24)
2. Planning is “spiritual” (Prov. 12:5; 16:3)
3. Get good counsel (Prov. 12:15; 13:10)
4. God can help us if we are willing (Phil. 2:12-13)
5. “What has God given you faith to believe Him for?” Bill Gothard
6. Try constructing a financial timeline for the next 70 years

Budget 101
1. Pray for wisdom (James 1:5) and for self-control (Galatians 5:23). Habitual overspending is a spiritual issue
2. Before spending, plan monthly expenses and long term goals
3. Record daily expenses in a ledger —keep a running total in each expense category (using the ledger or on the outside of a cash envelope)
4. At the month’s end, total expenses in each category and compare with target figures, and adjust for next month, if needed
5. Compare all expenses with all income
6. Move any surplus to savings, earmarking it for a particular need
7. Deduct any shortfall from your next pay before spending it

Common Budgeting Challenges
1. Spending too much money on airtime
Tip: WhatsApp calls are free (you pay only for data)
2. Food expenses getting out-of-control, including eating out
Tip: Try as much as possible to eat at home. You can take home made food to work for lunch.
3. “Over-recreating,” including movies, going to the beach
Tip: Spend from envelope
4. Impulsive spending- Buying dvds/cds in traffic, buying anything and everything that colleagues or friends bring your way
Tip: Develop a principle not to buy what is not planned for except it is exigent.
5. High debt load and failure to even list and total all debt
Tip: As much as you can, stop borrowing!!! List all your debts and strike each one off the list as you pay
6. Little or no savings—failure to plan for future needs and goals
Tip: Save ! Save ! Save !
7. “Miscellaneous” spending out-of-control
Tip: Again, be principled!!
8. Unable to pay for private schooling for your children
Tip: Cut your coat according to your cloth. Withdraw your children if you
can’t afford private schools. Take them to public schools or less
paying private schools. Don’t use other people’s “Watch to work”

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Welcome to the Redemption Light Magazine Web Portal. At Redemption Light, we publish good news of glad tidings and assist our readers in their determination to walk perfectly before God and to live by God’s word.

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