How to plan financially for a disaster
Making good decisions with your money helps you have confidence and be prepared for life’s ups and downs. Heavenly Father has given us everything, including our money, and He can help us use it wisely. Read on for some general tips on how to manage your finances:
Part of becoming like the Savior includes experiencing hardships during this life. Learning some basic skills can help us prepare to face challenges and disappointments with resilience. Learn how to gain these skills.
1. Pay tithing and fast offerings first. The Lord has promised to open the windows of heaven and pour out great blessings upon those who pay tithes and offerings faithfully (see Isaiah 58:6–12; Malachi 3:10).
2. Make a budget. A budget is simply a plan for how to use one’s money. Begin with income, and then build a plan for where that money goes, like savings, food, housing, transportation and so on.
3. Adhere to the budget. It is OK if things don’t go perfectly. Learn from those moments to improve.
4. Spend less money than income. This is key to financial stability. It may mean that individuals and families need to look at their expenses and decide where they should spend less. It could also mean that they need to look at ways to increase their income.
5. Avoid debt. With just a few exceptions, like buying a modest home or investing in education, you should avoid debt.
6. Save and budget for unexpected expenses. Plan to have a few months of money set aside in case of an emergency or job loss. Planning for the unexpected can help people feel less panicked when tough financial situations arise.
7. Save for the future. Set financial goals that you would like to achieve, like buying a home, planning for a life event, or other possibilities.
8. Seek education. Consider certifications, trainings, and trade school, college, or university degrees that might enrich your mind and help you make a living.
- ChurchofJesusChrist.org (For more and other tips, see "Tips for Being Financially Prepared")
