There’s been a lot of bad news lately when it comes to money. Inflation is at the highest level in 40 years, experts think it’s likely that our economy will enter a recession, consumer demand continues to be high, and even Bitcoin has taken a huge fall from grace.
The price at the pump is unbelievable. I know it’s going to be high each time I go to fill up but the final price still shocks me. I finally gave in last month when I realized I needed to stop budgeting based on old gas prices and adjust my budget to reflect reality.
I can tell you that we are definitely having to trim up our spending based on our two teacher salaries. I’m just thankful that we went shopping for our new-to-us vehicle last year before the car demand became what it is.
When inflation is out of control and people are worried about filling up their cars, the economy, and retirement accounts, it’s important to remember what is in your control. What you can control is much more important than the things that feel bigger than all of us.
So what can you control?
It’s the same principles you use for Finding Margin, the framework I’ve been working on to help people with money.
- Clarifying your Vision
- Controlling Expenses
- Saving for the Future
- Make a Plan for Your Debt
Get really clear on what you want your money to do. You’re going to have a lot of money pass through your hands over the next ten years. What do you want yours to do?
Make a plan for the money that’s yours to direct this month. Decide where it needs to go, what’s important to be spending on this month, and then what you’re not going to be spending this month. Create a budget that helps you keep track of how you’re doing. This is where you create your margin each month.
Make sure that you’re directing money each month to go towards retirement savings. Make it automatic where you don’t even notice that it’s gone.
Lastly, make a plan for your debt. Know when you’ll pay off each debt, and then extinguish the cycle of getting into more.
Keep your focus on good money habits that’ll serve you no matter what’s going on around you.
Jared
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