September 2012 Wise Stewards Finance Tip

Wise Stewards Finance Tip Series 2, Article 5

“U S E   A   B U D G ET.   Every family must have a predetermined understanding of how

much money will be available each month and the amount to be spent in each category of the family budget. Checkbooks facilitate family cash management and record-keeping. Carefully record

each check when written and balance the checkbook with the monthly bank statement. Save and invest a specific percentage of your income. Liquid savings available for emergencies should be sufficient to cover at least three months of all essential family obligations. Every LDS family should file honest and timely tax returns. ” 

–from Elder Marvin J. Ashton’s One for the Money Guide to Family Finance 

It is essential to have a functioning budge and to know how much money goes in and out each month.  One thing that makes it harder to keep track is the use of debit cards.  Most of us no longer write checks every time we purchase something.  Swiping a card is so much easier, but it also makes spending money easier-and recordkeeping easier to forget.  Don’t forget to track all of your purchases.  Always review bank statements and reconcile your spending.  You don’t have to budget for an entire month, but do budget for a specific time period.  It is helpful to have this match your pay period whether that is monthly, bi-weekly, weekly, etc.  All these tips are meant to keep us out of pitfalls like the one in this quote from Elder Ashton: “Please listen carefully to this—and if it makes some of you feel uncomfortable, it is on purpose: Latter-day Saints who ignore or avoid their creditors are entitled to feel the inner frustrations that such conduct merits, and they are not living as Latter-day Saints should! Bankruptcy should be avoided, except only under the most unique and irreversible circumstances, and then utilized only after prayerful thought and thorough legal and financial consultation.”