14 FINANCIAL MANAGEMENT TIPS
From Adam Hamilton’s Enough: Discovering Joy Through Simplicity and Generosity
1. Develop a spending plan.
2. Reduce your spending.
3. Pay down your debt. Make it your goal to eliminate consumer debt. Use a timeline of months, years.
4. Stop using credit cards; if you must use credit, use only one card.
5. Pay off credit card balances each month.
6. Find ways to earn more money.
7. Communicate clearly with your creditors.
8. Find a financial coach to help you do a financial assessment, spending plan, and develop your financial goals. Consider and compare certified credit counselor agencies …
Financial Counseling Association of America
National Foundation for Credit Counseling
U.S. Department of Justice Credit Counseling & Debtor Education Information
9· If you apply for a debt consolidation loan (second mortgage), make sure your new monthly payment is much lower and that you can make such payments.
10. Borrowing from a friend or family member should be the last resort. Do not ask someone to cosign on a loan.
11. Check your credit report each year for errors, at www.annualcreditreport.com.
12. Establish an emergency fund.
13. Protect your family with insurance: Term Life, Health Care, Disability, Auto, and Homeowners.
14. Buy your home.
SIX FINANCIAL PLANNING PRINCIPLES
From Adam Hamilton’s Enough: Discovering Joy Through Simplicity and Generosity
1. Pay your tithe and offering first.
2. Create a budget and track your expenses.
3. Simplify your lifestyle (live below your means).
4. Establish an emergency fund.
5. Pay off your credit cards, use cash/debit cards for purchases, and use credit wisely.
6. Practice long-term savings and investing habits.
CREDIT CARD PAY-OFF STRATEGY
From Adam Hamilton’s Enough: Discovering Joy Through Simplicity and Generosity
Use this technique to pay off multiple credit card balances. This method is simple and effective.
Review your credit card situation:
Which cards have the highest balances?
Which cards have the highest interest rates?
1. Start with the card that has the lowest balance.
Determine the amount you can pay each month over the minimum payment in order to completely eliminate this debt. Be aggressive, pay it off, and celebrate when it is paid.
Pay off the card according to your plan.
2. Next, move to the card with the next lowest balance.
Apply the same amount you paid on the first card payment plus the minimum required and eliminate that credit card debt.
Pay off the card according to your plan.
3. Continue to pay off each credit card in this way, one at a time, until they are all paid off. By using the determined amount plus the minimum, you can become debt free.
Note: If two cards have the same balance, pay off the card with the highest interest rate first.
