M is for MONEY! Money challenges are everywhere. Simply look at our federal government. As of today (May 2024), the United States of America is $34.7 trillion in debt and total household debt is over $17 trillion. From the top to the bottom America is in a financial STORM and many don’t care or are unaware. I say often that our politicians can’t manage milk money, yet we entrust them with our national well-being. Irresponsible leaders breed irresponsible citizens.
Recent out of control and irresponsible federal government spending caused record inflation. In an effort to combat record inflation the Federal Reserve turned to raising interest rates to slow inflation, while the U.S. President and Congress worked in direct opposition to the Federal Reserve to drive inflationary pressures higher by spending at record levels. As a nation, we live with financial incompetence at the highest levels and then wonder why we see the numbers below.
77% of Americans report feeling anxious about their financial situation.
65% of Americans live paycheck to paycheck.
58% feel that finances control their lives.
52% have difficulty controlling their money-related worries.
Americans are most worried about their financial future, which includes: not having enough money to retire (68%), keeping up with the cost of living (56%) and managing debt levels (45%).
And the impact financial stress has on Americans stretches into all aspects of life with respondents saying they feel fatigued (43%), find it difficult to concentrate at work (42%) and have trouble sleeping (41%). A quarter of the population (25%) said financial stress affects their relationships (CNBC and the Motley Fool).
While you and I have very little say about what Washington, D.C. does with our hard-earned tax dollars, we certainly can manage our money better in order to prepare for our own financial STORMS that certainly await all of us. Let’s look at a few ways we can better manage our dollars to reduce the stress and pressure that money can place on us.
1. Budget – Dave Ramsey says that no matter what you want to do with your money, it starts with a budget. A budget is simply a plan for what you want to do with your money. If you don’t plan your money, you will not succeed with money.
2. Save – spend less than you make and save as much money as possible. Many money experts agree that you need 3 – 6 months of living expenses in savings. This may seem like an impossible task for many. Begin with enough in savings to cover a major car or home repair. Most of us can save $1,000 to $2,000 if we really try.
3. Minimize debt- Debt can be a financial killer. Especially credit card debt and car loans. Debt can encourage you to spend more than you have, and then you have to pay it off with interest. With debt, you end up paying more for products than if you just pay cash. Debt is the primary cause of serious financial problems.
4. Give – Commit to giving. Make it your top priority with your finances. Why? Because there is power in sacrifice. Giving helps us to prioritize our money. It should be the first line on our budget. Start small and increase it each year if you’re not comfortable with giving. Give and watch what God does in your life.
5. Invest for the Future – Most Americans feel less prepared for the future than ever. According to the Federal Reserve, only 30% of Americans feel adequately prepared for retirement. Social Security is not designed to cover all retirement needs and will leave you woefully short in your later years. Seek a professional financial planner to develop your investment strategy for the future. Be prepared.
So, here’s where we are in our STORMS series.
S – Stress
T – Trials
O - Others
R – Reality
M – Money
S –
It’s never too late to take control of your finances to prepare and even avoid some major storms in life. Money may not be the key to happiness, but well managed money and financial planning certainly give us peace of mind and a sense of security. We must be good stewards of what God has given us.
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