After taking Step #1 of writing down what you own, owe, earn and where it goes, you are ready to take Step #2 on the journey toward financial freedom.
Step 2 – Plan Your Spending (Budget) - Proverbs 21:5 “The plans of the diligent lead to profit as surely as haste leads to poverty.”
Solomon tells us that financial freedom is not determined by how much you make, but by how much you spend! Your yearnings will always exceed your earnings. Solomon teaches us that financial freedom comes not from making more, but from spending less. We will spend less as we carefully budget our expenses and match it with our income. The budget then becomes the guide for our spending.
“Haste leads to poverty” speaks about impulse buying – the trigger word is “SALE”. Proverbs 21:20 “Stupid people spend their money as fast as they get it.” Spending can be an addiction that attempts to fill a deeper inner need for love, acceptance, or approval. Shopaholics most generally need help in dealing with their addiction.
How do you spell “relief?” B-U-D-G-E-T.
Plan your fixed and your flexible expenses and you will be surprised how quickly you have more money than you thought you had. Be impulsive in your buying and your money will slip out of your fingers. Plan for that expenditure, save for the expenditure and then buy it if it is necessary.
After taking Step 1 and Step 2, you will be ready for your next step on the journey.
Planning it all carefully ~ Bob
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Welcome to the table, friend!
This is where we gather and hang out. I'd love for you to pull up a chair and jump right into the conversation. Or simply say 'hello.'
l'll be dropping in to visit you sometime soon ...
Linda