Good money management

Even though January 1 is just another date on the calendar, there’s something about turning the page to a new year that provides some optimism and a renewed drive to set some goals.

No matter how many money trees you possess, your financial health will not improve if you do not also take care of it on a practical level.

As believers,  you must incorporate the same principles of good money management in your life, including setting budgets, living within your means, and investing.  These are the ways to achieve abundance in your life.

Here are 4 Steps to help you get started:

Pray and plan effectively - This is a continuous process and is not always popular with people who are keen to just get on and spend. However, planning does give you the chance to take a step back from day to day duties and take time to pray and think about what you are doing and why you are doing it.

Budget - A detailed budget helps you to analyze your expenses and how you spend your money. This can be considered as part of the planning process and is normally viewed in the same way, but a detailed budget enables you to examine your money holistically.

Invest -  Social security is a thing of the past and can no longer be relied upon. Instead, find ways to generate what investors call “passive income,” it can be the staple of your nest egg. “It is the making ‘money while you sleep’ concept. If you’re unsure of where to start, look for a simplified approach.

Educate yourself - Don’t turn your financial future over to anyone. It is a big mistake to let your financial planners take over your finances. Ask questions and learn. Warren Buffett, the richest man in the world says, never invest in anything you don't understand.

Distinguish between needs and "wants." - God has promised to meet all our needs, but He has not promised to meet all our "wants." We must distinguish between the two. We should buy things for their usefulness, not for their "status," or just because we want them.

I know these are simple rules and you probably know them but if you don't put them to practice you are not being a good steward. And the truth is our finances shouldn't be complicated. They only do if they rule and reign your life.

Making small changes that are spread out over the course of a year is guaranteed to get you on the right road to financial freedom. Saving R300 a month on food doesn’t sound like much, but if you do that throughout the year, you’d have nearly R3600 that could have gone into your emergency fund, retirement account, or applied to credit card debt.

"You shall remember the Lord your God, for it is He who gives you power to get wealth...." Deuteronomy 8:18