Money Management: Income, Spending, and Saving

Your income is the basis for money management. 

Only once you have an income can you start spending or saving.

What are you using your income for?

When it comes to spending, you need to manage your income responsibly. 

Obviously, you will use most of your income to cover your essentials. This will include covering your living expenses, such as Home costs, food costs, travel costs, etc.

But how are you spending the balance of your income?

It is important to save part of your income. 

By saving, you can build up a contingency fund, ensuring you have money available to cover the emergencies and the extras that often arise out of the blue. 

Having savings will…

• Bring peace of mind
• Keep you out of debt
• Ensure that you have capital available for when times are tough
• Help you build up wealth to cover your retirement and dreams 

I must stress that if you don’t build savings into your budget and don’t make it a priority, it just won’t happen. These will always be something that will pop up to steal your money and erode your cash flow. But, if you save part of your income, you can set yourself up for a brighter tomorrow. 

It is important to set up a budget and use your money wisely. When it comes to spending, be wise and live within your means. Watch your income closely. Spend carefully. Save regularly. 

“The earnings of the godly enhance their lives, but evil people squander their money on sin.” (Proverbs 10:16)

“The wise are cautious and avoid danger; fools plunge ahead with reckless confidence.” (Proverbs 14:16 NLT)

“Honor the Lord with your wealth and with the best part of everything you produce. Then he will fill your barns with grain, and your vats will overflow with good wine.” (Proverbs 3:9-10 NLT)

“But those who won’t care for their relatives, especially those in their own household, have denied the true faith. Such people are worse than unbelievers.” (1 Timothy 5:8 NLT)

“Whoever gathers money little by little makes it grow.” (Proverbs 13:11 NIV)

So, look after your INCOME. Be responsible with your SPENDING. And SAVE to build up money for your short-term needs and long-term goals and dreams.