Good stewardship is the ability to manage and protect one’s property or money properly and responsibly. It may be difficult because there are a lot of factors to consider. But despite that, we should learn how to be a good steward of money.
Oftentimes, we are clueless as to where our money goes and it is very frustrating. It can feel like you’re working so hard and yet it’s never enough.
Sometimes one would resort to borrowing money from friends and families or applying for salary and credit card loans just to sustain our lifestyle. We are never contented with the material things and the gratification it brings.
Greed and envy always get the best of us. But then there’s the looming feeling of guilt and worry. Guilty of not having saved enough. And worried about what the future would bring with no savings or investments.
That said, we should be establishing a method on how we use money wisely and responsibly so that we can be good stewards as we should be.
Creating a Budget
Fold a sheet of paper into two columns. Write down on one column all income in every source. On the other column, write down all expenses, every penny that you spend on. Consider going through bank statements, receipts, credit card statements. Make this a habit. Always make a list of your income and deduct your total expenses.This will make you aware of how you handle your money. Also, this will outline if your expenses are measuring up to your total income. This tool could warn you on overspending and can take you to the next step, saving your money.
Set a goal for both expenses and income. Decide on your priorities and keep a track of your short and long-term goals.
You have to know how to save. Even if it’s a penny. Even the coins you pick up on the streets, go ahead and save it. Don’t take for granted any amount of money you have.
Be aggressive and disciplined when it comes to saving. You can start by creating a savings account or investing your money through investment trust funds.
Cut on your expenses to save.
Also, consider living a healthier lifestyle. By avoiding alcohol, smoking and eating unhealthy foods, you not only save but also become healthier.
Get Out of Debt
Make a conscious effort to get out of debt.
Stop getting into debt just to fund your lifestyle. Establish a starter fund and stick to a realistic budget. It is a very freeing feeling if no collecting agency is behind your back and always disturbing your peace. Always go back to your budget list so that you would know when to cut back.
Pay your credit cards on time so that you won’t be charged with interest and other penalties. Do not get swayed on promos, rebates, and freebies. This will just tempt you to buy unnecessary things.
If you are already in debt, it’s time to pay them one by one now. Aside from cutting costs, look for an extra income. Remember that the longer you pay your debts, the more interest will accumulate. You can ask your creditor also for discounts and special payment plan.
Give to Charity
After you have set aside for your immediate and future needs, give to the poor, the needy, the sick. Money is just a tool and how we spend it defines the goodness in all of us.
Live a Simple Life
Even when you are earning a lot, don’t get tempted to increase your spending. Many have fallen into a trap where one earns a lot, and the spending increases, but the saving does not. There’s nothing wrong with being frugal. No matter how wealthy you are, learn to live a simple life. Ask yourself, do you need luxury items? Is it worth it?
Time and money are the two most important resources in our lives. And when we live a simple life, we will have more time and more money.
Be a good steward of money. Learn how to use it properly and responsibly and you can enjoy your money for the longest time.
Track All Your Accounts With Personal CapitalPersonal Capital lets you see all of your accounts in one convenient place. Sign up now for free.
More from my site
Latest posts by Joy (see all)
- How to Have an Affordable and Safe Staycation Even with the Pandemic - October 14, 2020
- How To Reduce Financial Anxiety - September 15, 2020
- Financial Lessons Learned From the COVID-19 Pandemic - August 17, 2020