4 Wise Steps to Consider in Handling your Finances

By: Ermz

Tithe. Save. Invest. Spend.

Handling our finances is one important habit that we should master.

Here are the 4 wise steps to consider in handling your finances.

This should be done in order of priority.

1. Tithe – this is already an old practice for several century as the bible in Malachi 3:10, says, ““Bring all the tithes into the storehouse, that there may be food in my house, and try me now in this, says the Lord of host, if I will not open the floodgates of heaven and pour out for you such blessings that there will not be room enough to receive it.”

Giving our tithe faithfully should be in our number one priority. This should our first cash outlay. Many people have attested to it that giving the 10^th portion of their income is giving back to God on what He has generously given them without measure. Without the good and generous people in this world, so many great inventions and things that happen may have not materialize.

Be one of the miracle workers of this world. Give the 10% of what you earned in church where you get your spiritual nourishment or you can give some portion of it to the community or organization that helps build this world to be a better place for the next generation.

2. Save – not at all times were harvest time. There were seasons of planting and seasons of famine. Every harvest time set aside a portion of what you earn for your special needs. This should be done faithfully too every month or every time income is earned.

This should be your short term saving that is being put in the bank. In times of emergency this can be easily withdrawn right away. You can set aside another 10% of it from your earnings.

3. Invest – pay yourself first. This is for your retirement fund. Building your wealth does not happen overnight. Be careful of where you should invest your hard earned money. Avoid offers from investors who promise easy and quick schemes to grow your money.

There were several options that you can choose from: Mutual funds, security bonds, treasury bonds, government bonds, and stocks market. But before going into one of this do your thorough research, learn from people have succeeded on it, find mentors to guide you and invest too on your financial education. Remember that to be teacher does not happen in months, it happen in years and have to struggle the difficulty of studying the lessons, passing the exams and day in and day out of going back to school before graduating from it. Then, passing the board exam before you can teach. Some further studied to specialize on a certain subjects.

In investing, you should consider this a long journey to take as long as you are still working and earning. Be aware that being an employee is not here for a lifetime. Closing down companies, downsizing and outsourcing happen. Plant while you still have seeds to plant. Be ready in times of famine. Harvest it when it is already the right to do it.

4. Spend – this is your regular expenses. A big portion of what you earned goes to your regular expenses. Determine what your regular and recurring expenses.  Put a fixed budget on it and be faithful to do this every time you purchase your day to day needs.

Tithe.  Save. Invest. Spend.

If you would not do this in order of priority, you will end up later on at loss on where to get your funding in times of need. If you reverse this order and spend it first, you could never give your tithe, save for emergency needs and invest for your retirement fund. Result would be heart breaking, living later on to the mercy and alms of family and friends. Don’t do this to yourself.

Tithe. Save. Invest. Spend.

Author:

Ermz Teodocio – Financial Literacy Advocate . Environment Advocate. Volunteer. Field of study – accounting. Logistician. Aspiring Social Entrepreneur (on her way to build a rich business).