Manage Your Money Wisely

Budget.  This is the only practical way to monitor, control, or reduce your spending. A good budget can give you a sens of where your money goes, and it can help you to reach your financial goals. Know what your income is, and spend less than you earn. Learn the difference between needs and wants.  Along these lines, Jesus wisely urged his listeners to "calculate the expense" before undertaking any project.  (Luke 14:28)  The Bible advises us to avoid unnecessary debt. -Proverbs 2:7. 

Plan.  Carefully consider your future needs. For instance, if you plan to purchase a house or an apartment, obtaining a mortgage at a reasonable rate may be a good decision.  Similarly, a family man  may feel the need to purchase life, health, disability, or other forms of insurance to protect his loved ones.  Considering your needs for the future may also involve planning for retirement.  Proverbs 21:5 reminds us that "the plans of the diligent one surely make for advantage."

Learn.  Invest in yourself by acquiring skills and taking care of your physical and emotional health. These are investments that will pay you back.  Make learning a lifelong habit.  The Bible puts a high value on "practical wisdom and thinking ability," and it urges us to keep on developing them. -Proverbs 3:21, 22; Ecclesiastes 10:10. 

Balance.  Keep money in its place. Survey after survey shows that those who care more about people than they do about money  are happier. Some  allow greed to throw  them off balance. How so? After adequately satisfying their basic needs, the embark on the pursuit of riches. Yet, beyond food, clothing, and shelter, how much does a person really need?  No wonder the Bible writer quoted at the beginning of this article also wrote:  "Having sustenance and covering, we shall be content with these things."  (1 Timothy 6:8) Cultivating contentment prevents us from developing the love of money and all the problems that come along with it.

The love of money is indeed the root of many evil things. Money will become your master if you let it. When managed properly, however, money can provide you with the freedom to pursue the more important things in life, such as a close bond with family, friends, and God. Still, in this world it seem impossible to be totally free of money worries. Will money always be such a source of anxiety? What hope is there for an end to poverty?  The concluding articles in this series  will answer those questions.

TEACH YOUR CHILDREN TO MANAGE MONEY

With so many adults in financial trouble today, experts are urging parents to teach their children about money-and to start early. Ask most children where money comes from, and they might say  "Daddy' or "the bank."  If you can teach your children the value of money-how to separate needs from wants, how to save, and how to invest-you may help them avoid the heartache of crushing debt and economic slavery. Here are a few suggestions.

1. Be a good example. Your children will gradually imitate what you do more than what you say. 

2. Set spending limits. Discuss how much you and they can spend. Learn to say no, and mean it.

3. Allow them to manage money.  If they receive an allowance or earn money from a job, give them some guidelines. Then allow them to make some decisions.

4. Teach them to share.  Encourage your children to share what they have with others as well as regularly to set something aside to honor God.  

Next time:  Blessings Greater Than Riches

From the jw.org publications