Five Ways to Manage Financial Resources

Keep your life free from love of money, and be content with what you have, for he has said, “I will never leave you nor forsake you.” Hebrews 13:5 ESV

Everyday, we struggle to make ends meet. Sometimes, what we have is not enough for our expenses. We often find ourselves wondering how to manage the little amount that we have. We wished we’re rich, so we won’t have to think about budgeting our money. Is being monetarily rich really the answer to financial difficulties? The answer is no. No matter how much you have in your bank account, if you do not manage your resources well, you would end up a pauper.

When I decided to resign from my job, I only had a little in my bank account. Prior to that, I was not so keen with my expenditure. Not that I just throw money for nothing, but I no longer keep track of my expenses like how I used to do in college. So, when I quit from work I knew I must be mindful of the money coming out from our pockets. My husband is a thrifty person and would always consider needs over wants. I, on the other hand would oftentimes give in to my little wants thinking that those were just ‘little’ and would not hurt our budget.

The truth is, money will never be enough. However, if you are a good steward you can gain financial freedom. What do you mean by financial freedom, then? This may have different definition to different people. If I am going to ask you what financial freedom is, how would you answer me? Is it being able to buy whatever you want? Or not having to work because you have so much in your bank account that could last you a lifetime? For me, financial freedom is living within my means but not limiting my financial growth.

So, how do we manage our financial resources?

1.       Understand your income.

First, you have to identify your source/ sources of income. Have a calculation of how much you earn in a day, a week, or a month. This way, you have a bird’s eye view of how much you can only spend. In recognizing your sources of fund, also consider the amount of money you want to save. Saving is like an investment that you can use for future needs.

2.       List down expenses.

I have a financial notebook where I jot down our expenses. I list down every expenditure daily, so I won’t miss out a thing. Understand your cash flow. I often hear people wonder where their money went because they don’t keep a record of their expenses. It may be tedious at first, but when you establish this discipline it becomes a normal thing to do. This is how I do my financial record.

		Month and Year
Date	Description	Income	Expenses	Balance	Remarks

In the description, you can subdivide it to food, groceries, gasoline, bills, etc. It depends on how you want to do your recording, though. Subdividing expenses will make it easier to identify which category you are spending more in case you need to cut down. At the end of the month, you total all your income and expenses. If you have a remaining balance, you can forward it to the next month’s income.

3.       Be a smart consumer.

Motherhood taught me to be a smart consumer. Whenever I go to the hypermarket, I compare products. I consider the quality, quantity, and the price. I just don’t buy something because it’s on sale. I do my groceries at Puregold and I availed with their Puregold Perks card. The Perks Card is a loyalty program that rewards shoppers with points every time you shop at any Puregold store nationwide. This is not a sponsored post, I just want to share this offering, so you can consider the next time you do your shopping. Other supermarkets also have different perks card, it won’t hurt to have one.

4.       If you need to borrow money, it must be a functional loan.

As much as possible, do not live in debt. If you really have to borrow money make sure it’s a functional loan. I got this term from my Aunt who is a great influencer to my life. She said that a functional loan is a loan you avail so you can use the money to something that can give you a source of income. Make sure also that you have the capacity to pay for the amount you loan including the interest. Make a time table as to when or how long you will pay your debt.

5.       Give back to the Lord.

All of the things that we have, including our finances come from God. Never forget to give back to the Lord through tithing and offerings.