At the end of February, I ended up closing two loans for the month. Last month I didn’t close any, and I’m reminded that once my guaranty goes away that I’ll have to make sure that I have enough set aside per month. As my good friend Mark Spencer would say it’s feast or famine. Having a budget creates guard rails for your life. You must rewind and examine your life. Did you always have credit card debt, a car loan, student loans, or a mortgage? For your budget you need to at a minimum be able to pay your fixed expenses. Base it around Dave Ramsey’s Four Walls. The four walls are food, utilities, shelter, and transportation.
I could’ve sworn it used to be clothing, but clothing is something you can buy cheaply and or have given to you. If you simplify your budget down to the fewest fixed categories, then the one expense that you must have when creating your budget is your shelter. You must have a roof over your head to motivate you to create your homestead. There’s nothing wrong with living with relatives, renting, or owning your own home, but your shelter is your kingdom. It’s where you rest, and refresh. Building your budget from this one fixed expense will help you know how much you need to earn. Food, Utilities, and Transportation are variable expenses that can go up or down, so it’s best to estimate on the high side.
Closing these two loans is a big relief for me, and it reminds me that it’s also important to have more than one stream of income, and to plan for the future. An asset generates income. Our only remaining liability is our mortgage which is made up of principal & interest and escrow (property taxes and homeowner’s insurance). Imagine what life would be like if you no longer had a mortgage payment. Can you see yourself debt free?
If you want to learn more about the self-lending principle or if you need a financial check-up, then contact me.
“The LORD will send rain at the proper time from his rich treasury in the heavens and will bless all the work you do. You will lend to many nations, but you will never need to borrow from them.”
Deuteronomy 28:12 NLT
http://bible.com/116/deu.28.12.nlt
I believe in your journey to….
A Debt Free Me
Pursuit of Excellence 