Are You Living Above Your Means?

How do you know?  Dr. Robert Schuller says that if you cannot save 10% of your income, give 10% to the church, and live on the remaining 80%, you are living above your means.  Also, there is a  rule of thumb that your mortgage should not be more than 25% of your income.

Financial planning must be done on an individual basis.  Everyone's lifestyle and goals are different.  

In order to control your finances you must be able to establish a budget and follow it.  I use a simple spreadsheet to create my budget and I use a software package for check register control. I categorize my expenses so I know where I am spending money.  Someone once said that in order to save money, you must know where you are spending it.  I have learned that lesson the hard way.

The lack of financial planning is responsible for a great deal of the stress we feel in our life today.  By taking responsibility for your finances, you take control of one of the major sources of conflict in most relationships.

Dr. Gerald Mann says that if you have the discipline to live by the 10-10-80 rule you will prosper, because when opportunity presents itself, you will have the money to take advantage of the opportunity.

If you would like a copy of my spreadsheet and instructions on how to use it, send an e-mail to joe@thewebsage.com and put 'websage budget' in the subject line.

- Joe Freeman