#6 Be Engaged In Financial Matters
“Suppose one of you wants to build a tower. Won’t you first sit down and estimate the cost to see if you have enough money to complete it?” Luke 14:28 NIV
The QoF does the physical maintaining of the royal treasury. She reconciles debits and credits to Quicken on a daily basis. The King neither ignored or controlled the bank account during our Debt Slaying Journey. I was, however, rather engaged in the process over the last four years. The QoF has a penchant for numbers and a certain tech savvy that I do not possess. I’m good with numbers. Ridiculously good. It just worked out better for the QoF to handle the day to day. Here’s how to get engaged:
1. Know what’s in your bank account. Look. Actually look. Some folks cop out with statements like “I don’t even wanna know how bad it is” followed by a giggle. I don’t giggle back. Not a giggler. Suck it up and look. You can do this. If you’re not banking online, start. It is so much easier to and more effective to manage your accounts online than to what for your statements every month.
2. Keep track of your expenses. Enter your expenses, as soon as practically possible, into personal finance software like Quicken or Microsoft Money. Not only will this help you keep track of what you are spending on an immediate basis, it can alert you to spending habits over a long period of time as well. Sometimes Lords and Ladies are shocked to see what they have been spending on dining out over the course of the year (or month)(or week)(or yesterday).
3. Balance your checkbook. Maybe you’re not a numbers person. If you’re not married: you are, by default, a numbers person. You kinda have to be. You don’t have to love it, you just have to engage yourself in the process. Spend only what you make (less really). Make sure that each expenditure is accounted for on a regular and frequent basis. As you’re getting started, have at least a one hundred dollar cushion that you vow not to spend. This will help you from overdrafting as you figure out the balancing process.
4. Joint Checking Account. If you are married, have a joint checking account (comment below if you want a further explanation). Push yourself to have a general idea of what is going in and out of your bank account if you are married and your spouse manages the checkbook.
5. Make fewer purchases. If you make fewer purchases, you have fewer entries. Not trying to be trite, it’s a very helpful tip. I used to create a personal challenge to make fewer purchases than I did the week prior. Have fun with it.
READ THIS: Stop Acting Rich by Thomas J. Stanley
