Category: Accounting Tips

Financial Bumps

During the summer months, it’s so easy to experience financial derailment. For the most part, everything outside is so bright and beautiful, school is out and families are out and about site seeing, traveling, eating-out, shopping and so forth. During these times one can experience financial bumps. Lets use the analogy of driving a car through a road with potholes in some areas; you will agree with me that you go through the pothole areas at a slow speed. The ride becomes bumpy and shaky for a while then after that you get back on track, pick up speed and the ride is smooth again.
So also is managing your money when you experience a financial bump especially after the summer holiday months. You can get back on track again slowly but surely.
Though you maybe on top of your finance, below are some things that cause financial bumps to name a few:
1. Unexpected expense
2. Undisciplined spending behavior
3. Shortage of budgeted funds categories
Getting back on track is possible but you have to stay focus. Just like the pot holes on the roads that create the bumpy shaky rides, identify the financial potholes in your life. Plan ahead knowing now your potholes and prepare better to avoid creating them.
If the financial pothole is an unexpected expense, set up a plan to get back on track. If you used your credit card, have a plan to pay it off. If it’s from your savings, that’s better, just keep saving and thank God that you have some saved monies. What if the saved money is not enough? Well, it helps to have some save monies because the potholes you created won’t be as big.
Potholes resulting from undisciplined spending behavior; well make a list of all that your heart desires, create a category in your savings fund and start saving towards those things one at a time and you just have to counsel yourself and say “NO, I can get that later not today”
Potholes resulting from shortage of budgeted funds, no problem, create the category you need and start saving actively to minimize the size of potholes you’ve created.
Prayerfully and carefully think about your plan in light of your resources, take the time to write it down and actively engage in the process to ensure focus on the plan.
If you do get frustrated don’t stay there. Face whatever is the cause of the frustration get help if you need to. The emotion of the frustration you feel says you can’t achieve something you are trying to achieve. This is not true. You can do anything you set your mind to.
Read Gen. 42:1-25(ESV); As Jacob sent his son’s to Egypt to buy corn/grain during the time of famine taking their monies with them, how did we know this? We were told in verse 25 that Joseph replaced every man’s money in his sack. Start this process today for, whatever you buy take your money with you. If you use your credit card, pay it off right away because you have the money already.

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As the 1st quarter of the year is here, check your actuals to your budget.

For your business, ensure you are not over spending already in certain categories and under spending in others. You still have some time to keep your payables within your budget.

Personal, I’m sure by now you’ve recovered from all the Christmas debt you accumulated if any and you are now getting back on track with your spending plan/budget. Start planning now for all the celebrations of this year including December 25, 2014 by putting a little amount of money as you can afford aside.

Remember having a TFSA account can help towards this goal if you need help.