1. Determine where your money goes
To get a clear picture you really need to examine your income and spending for 3 months minimum. Income and expenses can fluctuate however with 3 months of information you’ll get a better picture of where you are. Even if you are debt free and living a good life you still should do this at least once a year.

2. Evaluate Income vs expense
The objective of the evaluation is to determine your financial health, no judgement. Compare your income to your expenses. If your income is greater than your spending you have savings. If however you end up with a negative number you’re spending more than you make and that’s a problem. Remember to profile your debt so you can adjust your spending.

3. Determine what goes where. Here's how you should allocate your funds.

  1. Giving Tithes and Offering
  2. Personal responsibility - Pay your bills
  3. Long term goals – (here’s where you invest)
  4. Education, Retirement, Car, Home (remember your money has a goal and purpose)
  5. Me time (now that everything is taken care of here’s where you splurge. It’s all about you )

Proverbs 21:5 New Living Translation (NLT)
5 Good planning and hard work lead to prosperity, but hasty shortcuts lead to poverty.

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