I often check to see what the financial adviser for my church is up to and he has provided his readers with the five rules for managing your money. I wanted to share them with you. Joe Sangl has an ongoing blog with advice on saving and managing money.
Money Management Rule #1: Make hay while the sun shines
Joe Sangl talks about his days of growing up on a farm and having to make hay while the sun was shining. Winter was coming and a famine for the livestock. He says you can relate this to your finances.
There will almost always be a time of famine, he says. Many are being laid off, subjected to pay cuts, healthcare issues and having to endure increases in expenses. This can especially be tough if you have no savings.
When you cut hay, more will grow to replace it. Sangl explains that if you don’t cut the grass it will die off. If you do cut it, you’ll have more growth. When it comes to your finances, if you save it will lead to more growth.
When you save plenty of hay, it gives you confidence. Setting up emergency funds make you feel safe and ready to handle any difficulties that come along. Even if you are just putting a little bit away it will add up in the long run. You’ll feel more confident and ready for the future.
I have plenty of friends who don’t have savings accounts and that can lead to anxiety. Fortunately, my husband and I have been able to put some money away in case we have any unexpected expenses.