Life Skills
5 Tips for Managing Money (So You Don’t Have to Resort to Eating Bananas Every Day Like I Did)
When my next paycheck came, I decided I needed to make a change. I also needed a break from bananas.
I remember walking down the aisles in the grocery store, stressed because I had just a few dollars to my name and needed to buy enough food for two weeks. I had spent almost my entire paycheck on eating out, having fun, and shopping online. But now it was the end of the month, and I was paying the price. Eating boxed mac and cheese was getting old, and microwavable ramen was getting older.
I turned the corner and walked into the produce section. I was hoping I could find something cheap that didn’t come out of a cardboard box.
And there they were. Beautiful, yellow, and—most importantly—inexpensive bananas!
For the next two weeks, I ate bananas in almost every possible way you could eat them. In bread, on toast, over oatmeal—I even froze them so I could eat them after they went brown. But even for the most enthusiastic banana eater, after 14 days, it got to be too much.
When my next paycheck came, I decided I needed to make a change. I also needed a break from bananas.
That change came in the form of creating and sticking to a budget. If you’re like me and find yourself in a situation where you need to learn to better manage your money, here are five tips to help you.
Consecrate Funds to the Lord
Growing up, I didn’t know much about money, but I did know this: my parents weren’t great at managing it. But despite their situation, my parents were always diligent about one thing every month: they always paid tithing and fast offerings.
Speaking of tithing, the Lord promised, “I will … open you the windows of heaven, and pour you out a blessing, that there shall not be room enough to receive it” (Malachi 3:10).
Even though we didn’t have much, we always had enough. When you’re feeling overwhelmed with money, the best thing you can do is “seek … first the kingdom of God and his righteousness” (3 Nephi 13:33) by paying your tithing first.
Avoid Debt
Elder Joseph B. Wirthlin (1917–2008) of the Quorum of the Twelve Apostles taught:
“Remember this: debt is a form of bondage. … We think we own things, but the reality is, our things own us.
“Some debt—such as for a modest home, expenses for education, perhaps for a needed first car—may be necessary. But never should we enter into financial bondage through consumer debt without carefully weighing the costs.”
When the choice comes between paying off the credit card or buying, eating, or seeing the next must-have, always choose the former. While some debt is OK and even necessary, it’s important to manage debt responsibly.
Save for the Future
Saving money is hard. At times, I felt a lot of anxiety about the future and how little I had in the bank. But even when money may be scarce, it’s still important to do as the First Presidency has taught: “Save a little money regularly to gradually build a financial reserve.”
Experts recommend saving at least 10 percent of your income. This can then be invested into retirement, the stock market, or high-yield accounts. Set goals and allocate savings for things like emergencies, travel, or living expenses.
When you have a financial reserve, you have the promise of the Lord that you “shall not fear” (Doctrine and Covenants 38:30).
Set a Budget—and Stick to It
The most difficult part of budgeting used to be tracking my expenses. But as I’ve gotten older (and since marrying my accountant husband), I’ve realized there is so much financial freedom in recording your spending. The Church even has a worksheet you can use to get started.
Whether you’re a saver or a spender, there should be balance. Elder Robert D. Hales (1932–2017) of the Quorum of the Twelve Apostles said, “I have learned that the three most loving words are ‘I love you,’ and the four most caring words for those we love are ‘We can’t afford it.”
Budgeting categories should make room for necessities, regular expenses, and fun. Even if your fun budget is only a few dollars, it can help you get creative as you plan activities each month.
Know Heavenly Father Will Help You
President Spencer W. Kimball (1895–1985) taught: “The Lord will not translate one’s good hopes and desires and intentions into works. Each of us must do that for himself.” As you pray and plan, Heavenly Father will help you know what works best for your individual situation and how to accomplish it.
Ultimately, God is here to help us. He cares about our goals, even the financial ones. As we work, make wise decisions, and act in faith, He will work miracles in our lives. After eating bananas for days on end, involving Him in my budgeting was one of the best decisions I ever made.
Overall, I feel more hopeful about my financial future than I ever have—and I know God has something to do with it.