BYU-Pathway teaches you how to take care of your money
Because of this,
1. Begin a budget
A budget is a plan for managing your money over time. To gain control over your money, you first need to figure out your net income. This is the money you receive and can use after taxes and other deductions.- Fixed: Weekly or monthly expenses that don’t change (tuition, rent, bills, etc.)
- Variable: Weekly or monthly expenses that do change (groceries, clothing, gifts, etc.)
2. Make an assessment
Understanding your income and expenses will help you avoid debt. Ways to increase your money include:
Spending less. Consider which purchases are necessary and which are not. For example, try cooking at home instead of eating out. Making small sacrifices like this will greatly benefit your finances.
Earning more. Find ways to increase your cash flow. For example, your BYU-Pathway education can help you qualify for a second job, a raise, or a promotion.
3. Stay disciplined
Once you have a plan for living within your budget, you need to follow that plan.
Here are four principles BYU-Pathway teaches to help you stick to your budget:
Set realistic goals. With finances, it’s important to begin with the end in mind. What do you hope to achieve with your budget? If you don’t have clear financial goals, answer the questions below. The first question you answer “no” to shows what your current financial priority should be.
- Do I pay a full tithe?
- Do I have a one-month emergency fund?
- Do I have health insurance or some other access to medical care?
- Am I free from consumer debt, like credit cards and car loans?
- Do I have a three- to six-month emergency fund?
- Am I contributing to a retirement savings fund?
- Am I working to eliminate mortgage and education loans?
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Find and use an effective budgeting system. It’s important to have one place where you can create, organize, and manage your budget. Google Sheets, Microsoft Excel, or the
Hold yourself accountable. When budgeting, the most critical steps are to follow up and follow through. Set small, daily goals that will help you see your success and avoid feeling overwhelmed. It will also be helpful to share your plans with a trusted individual who can offer support and guidance.
Counsel with the Lord. Learning almost always happens “line upon line, precept upon precept.”