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Finances can be a scary thing, especially in this climate of inflation and political unrest. Money is stressful and often causes strife between spouses, but it doesn’t have to. I know that when I have prepared myself before any emergencies, major purchases, or significant repairs, I have less stress and greater peace-of-mind. What are finances, exactly? According to investopedia, finances include “managing your money as well as saving and investing. It encompasses budgeting, banking, insurance, mortgages, investments, and retirement, tax, and estate planning.”
That’s an intimidating responsibility! Especially when we are managing for more than just ourselves. Personally, I like being in control, in a sense, of the money. Meaning, I have access to all of our accounts – from bank accounts, credit cards, and insurances – and I can make sure that everything is in order.
So, where do you start? The first thing should be to find gratitude for what you do have. Being grateful for the food you have to eat, the home (whether it be a trailer, an apartment, or mansion) you have to stay in, and the family you have. This is important even if you are swimming in debt, or living paycheck to paycheck. It is especially important to express gratitude if you are doing pretty well with the finances in your life. I find that when I give thanks to God for my blessings instead of looking at everything I don’t have, I am able to have more peace of mind. When my mind is at peace, I can more easily find my way. Gratitude and humility can keep strife and contention from becoming a barrier between you and your spouse.
Next, start where you are. When I first heard this advice it was given for spiritual growth, but I believe it applies to everything, including your finances. Sit down with your spouse and figure out where you are. Are you well off? Can you increase your savings? Are you in debt? Do you need help spending less? There are a lot of available resources out there, and as a homemaker, it is part of your responsibility to seek them out. My husband and I make the big decisions together because we both have to be on board with whatever budget we establish.
Financial Stewardship
Part of being a good homemaker is being a good steward of what is yours. This means living within your means and not taking for granted that which you have. I don’t believe you need to live without any sort of comfort or fun, but sometimes we have to change our expectations. Being a steward suggests that what we have is not necessarily ours, but it is firmly our responsibility. The land we live on is within our stewardship. Our homes that we have paid for and our families in our charge to care for. It is easy to forget that what we have can be taken from us if we are careless.
Society today is very much a “me, me, me” and “gotta have my stuff” culture. TikTok and Instagram are saturated with influencers that are trying to sell you something. I mean, even I am with my recommendations on amazon products. It has nothing to do with capitalism or socialism. It is a cultural attitude of excess. There is an undercurrent of envy in the rising generation where the rich are to blame for their woes; forgetting that in America we have the largest middle class, and our poor are wealthy compared to many other countries. While the rich have much, and it would be great to be rich, more people are better off in this country. More people are wealthier and are comfortable. To be envious of the wealthy does nothing to better your situation.
I did the math once, and if the richest man in the world (currently Elon Musk with 247.6 billion USD) split his money evenly with everyone in the world (8.2 billion), everyone would get $30.19. Takes a bit of the wind out of our sails, doesn’t it? Ok, what if he split it just with his fellow citizens (the United States at 333.3 million), we would each get $742.87. Yeah, that is it. That would be a car payment or a first class plane ticket to Texas. And now, all the people that had employment because of what he builds and buys are now unemployed.
Wise ways to manage your finances
What that means for us is that we need to care for what we have. There are small changes that you can make as you get started. I did not change all at once, it took time for me to mentally adjust. Now is the time to make a list of what you have. You and spouse have an income (whether or not you are employed outside of the home, it is “ya’lls” income), insurance for your car, your health, and your home. Check to see what your benefits and what retirement you have. Getting this in order now will make it easier to access should you need them. You will also be able to make more informed decisions if you have knowledge of all you have.
As with your taxes, you should have copies of your insurance plans, bank accounts, and investment accounts in one place. Make a file folder on your computer to put all downloaded copies of the plans. If you have the space, put your printed plans in a file box. It will be easier to access them if they are all together. I would also recommend having all of your vital documents in a secure place, preferably in a fireproof safe. Vital documents are your birth certificates, social security cards, marriage licenses, and any titles you may have. It is easy to lose important papers in the mess of mail and office papers.
Debt
I hate being in debt. It is a huge stressor in life, that, frankly, we should avoid putting ourselves under. Even in today’s inflated world, you can get out of debt. If you have a hard time controlling your spending, then I would recommend Dave Ramsey’s ways to get out of debt. Unfortunately, we live in a world of increasing digital money. Credit cards are needed to build credit. Credit is what gets you good terms for car and house loans, and can even affect your ability to rent an apartment. Paying off bills also gives you credit, just not as much as it really should.
I would recommend the book series Broke Millennial: Stop Scraping By and Get Your Financial Life Together by Erin Lowry. Lowry is able to make finance concepts easy to understand and the writing makes it enjoyable to keep reading. When I read this, I was entering my 30s. I wish I had read it in my 20s.
Have you ever heard of providentliving.org? I used this suggested method, the debt elimination calendar, to get out of debt with over $40,000 in school loans and a car loan. The website has a debt elimination calendar calculator that you can use to set up your debt payoff schedule. The website also has wonderful information regarding self-reliance, emergency preparation, gardening, and food storage.
Some times it feels like you will never be clear of it, but you will. As with a pile of dirty dishes, you have to start with one dish at a time and try to stop adding to it for a while.
Savings Accounts
How do you save when everything is so expensive? I know that it is hard to put money aside when it would be nice to eat out more than once or twice a month, or you really want that coffee each morning. Did you know that a quarter of Americans have less than $1000 in savings? Half of the population have less than $5000. I get it, you don’t consider sometimes where your money is going until you actually sit down to go over your finances. When I was single, I did not save money as I should have. I would pay my tithing, so everything seemed to work out such that I wasn’t crushed, but I definitely didn’t have a nice nest egg when I could have if I wasn’t being frivolous with my money.
I have spoken before about being a nomad. How much money have I wasted on moving every year? On trading in cars and getting new ones every couple of years? Now, I consider some of the places I have responded to during my time on patrol. There were a lot of low-income homes that had huge televisions. One trailer I walked into had a TV that covered the entire wall…but no sheets on the childrens’ beds. They had large, newer pickup trucks with shiny rims. We can use our money wisely, and improve our financial situations. Saving money does not make you cheap. It makes you wise. Much like the ant and the grasshopper.
On the Provident Living website, there is a savings calculator. You put in your expenses and how much you should make, and it will tell you how much you should and can save each month to reach your goals. It is very handy. When we start saving, think about saving that first $1000. Then, start considering the amount you need to save for 3 months of coverage.
Other ways to save
I had to increase my cooking knowledge because I wanted a more diverse menu and because I love to eat at restaurants. Spending $50 per person on a meal simply isn’t a practical way to live. So I learned how to cook some of the items I like to order when I out to eat. I learned how to make naan and cook garam masala (Pinterest!).
There are other ways to save money and care for the things that you have. It is not necessary to learn how to sew (I mean, go for it if you want) but you should know how to mend. Buttons, tears, and hems. You can put together a small sewing kit for cheap. Buy often-used items in bulk at Costco or Sam’s Club. There are coupons, and sales.
Some other ways to save is to change insurance companies. I recently changed up my car and home insurance. Mostly because they were going to raise my rate by over $1000 simply because…well, reasons I guess. I didn’t have any claims. I paid on time. But my rate raised anyway. So I looked around and I was able to get the same type of coverage for the price for a little cheaper than I was already paying. Switch it up. You don’t get savings for being long time customers, unfortunately. Spend a little time checking coverage plans.
Other Finances to Familiarize Yourself With
Once you get your debts in order (not necessarily paid off, but in order) and your small emergency savings is building, there are some other things to consider in your finance journey. Health insurance is such a crippling burden. When you or your spouse take on a job, you are offered benefits. Take advantage of those. If you are not familiar with your health insurance and what they offer, then I would highly suggest you take a minute in November when there is open enrollment to read through your available plans.
I was glad to be offered a High Deductible plan, which offered a Health Savings Account (HSA). This is great because not only is the money I put in there taken pre-tax, my husband’s employer also matches it and adds money to my account. I also get to keep that money after I and/or my husband quit (or retire). So get to know your insurance.
Money for Retirement
Another item on your list of finances is to start looking at is an IRA (Individual Retirement Account) or a Roth IRA (essentially, IRA is pre-tax deduction and the Roth is after tax.) If you have a retirement account through your or your spouse’s employment, I would take a look at the benefits your employer is offering. Oftentimes an employer is putting money into your account, matching what you put in. This is bonus money! After a certain amount of time (usually 5 years) you become fully vested and you keep everything your employer put into your account. If you quit your job, you can leave your IRA in that same company though usually it will need to be a different program. I moved mine into a different company, as they offered more varied stock options. If your employer offers a pension, TAKE IT!
Money for Investing Accounts
If you have some spare cash in your account, you can also start looking into investing. I did some digging into companies such as Robin Hood, eTrade, and Acorns. I personally went with Robin Hood since you can do individual stocks as well as general market investing. You don’t have to have a bunch of money to start investing in stocks, ETFs, cash, etc. and it’s a less expensive way to start learning how to invest. Honestly, I still don’t understand the stock market or what exactly to get into (which is why I will never be a rich woman), but it has become a growing interest since I learned that you can’t get rich with a saving’s account. Rich people get rich off the market. Seriously, though, if you need it all dumbed down, Erin Lowry has a book on investing too.
Finances don’t have to be stumbling block
Finances don’t have to keep being scary. As you get your footing, you too can take the waves that buffet your ship without worrying about capsizing. There are so many free ways to get the basics on your finances: books, YouTube, ask your friends and family. We never talked about money much in my family. Investing and savings simply weren’t discussed. I intend to change this. I want my children to be financially responsible, and the best way to give them a fair shot at it is to teach them and live by example. Small changes can have big results.