Introduction
Why learn about money? Because nearly 80 percent of all divorced couples between the ages of 20 and 30 list financial difficulties as the primary cause of their separation. Suicide rates are climbing along with the national debt. Bankruptcy is higher than ever despite the new bankruptcy “protection” laws. Foreclosures are at an all time high. You need to learn about what God has to say about money (check out Christian Financial Ministries at www.good-steward.org). You also need to learn good practical applications—how to apply biblical financial principles in today’s world. The answer is education. You must learn, or relearn about money.
Alan Greenspan once said, "No matter who you are, making informed decisions about what to do with your money will help build a more stable financial future for you and your family." It's possible to meet your financial goals - whether your income is small, medium or large.
By looking for good information on managing your finances, along with choosing to budget, save and use credit wisely, you can:
• Buy a home.
• Send your child to college.
• Start a business.
• Pay off debts.
• Put money away for a rainy day.
• Save for retirement.
No matter who you are, you can take charge of your financial future. Start today! To get you started, here are eight simple but critical actions to take NOW.
Action #1: Set Goals
Most people who have money didn't get it overnight. They set goals and worked hard to reach them. TRY THIS: Write down your short-term and long-term goals. An example of a short-term goal is saving up for holiday gifts; a long-term goal is saving for a home.
• Set due dates for reaching your goals.
• Be realistic.
• Be flexible. (It's OK to adjust your goals and strategies.)
• Go back and look at your goals after six months to check your progress.
• Don’t forget your “giving” goals.
Action #2: Develop a Budget
Find out where your money is going. Unless you're tracking your money, it's probably not going where you really want it to go.
TRY THIS: Write down your total monthly take-home pay. Then list your monthly expenses. At the end of the month, subtract those expenses from your total pay.
• Look for places to save.
• Use this information to set a monthly budget that includes saving.
• Review how things are going each month.
• Don’t forget to include “giving” or “tithing” as a budget line item.
TIP: Carry a small notebook. Write down everything you spend. Include small things like candy bars.
Action #3: Start Saving
Small amounts of money saved regularly add up fast. Compound interest, which lets you earn interest on interest, will make your savings grow even faster.
TRY THIS: Open a savings account. Have part of your paycheck deposited directly into your savings account every month.
• Shop for the best interest rates.
• Understand all fees and charges.
• Take advantage of your company's 401 (k) or invest in an IRA (individual retirement account).
• As your income rises, increase the percentage you save.
• Know that the greater the potential profit on an investment, the greater the potential risk of losing your money.
Action #4: Manage Credit Wisely
Borrowing can help you meet your long-term goals for an education, car or home. But borrowing for day-to-day needs and wants gets many people into financial trouble.
TRY THIS: Before using your credit card, getting a payday loan, renting-to-own or borrowing against your home's equity, ask yourself if you really need to borrow the money.
• Avoid spur-of-the-moment purchases.
• Set a monthly limit on credit card charges.
• Pay more than the minimum on your credit card bill.
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Did Obama support the murder of Christians in Kenya? Aparently he raised $1 million dollars to his uncle who did.