Tuesday 8th September 2020 Prayer Devotion
Scripture:- 1 Timothy 6:1-12
Topic:- 13 Common Money Mistakes To Avoid 
Text:- 1 Timothy 6:10
- Withdrawing Money With Your Credit Card:
Never use an ATM to withdraw cash on your credit card if and when you do get one. Biggest mistake ever. Cash withdrawals on credit cards are recorded on your credit score and can look like irresponsible spending, which is a big red flag for Banks providing commercial loans.
If, further on down the line when you go to apply for a mortgage to buy a house, a Bank sees that you’ve been using your credit card to withdraw cash, it might look to them like you don’t know how to manage your money and are having to resort to your credit card to pay for basic living essentials.
The Bank could assume that you were in a tight spot and had to withdraw cash using your credit card because you had no money left in your Bank account. As such, they may think you’re not financially stable enough to take on a loan. Eek!
- Not Negotiating A Salary When Starting A Job:
Another bad financial choice is not negotiating your salary before starting a new job. Negotiating your salary is essential for two reasons. Firstly, you want to make sure you have enough money to cover basic needs like food and rent from the get-go.
Secondly, negotiating your salary sets the tone of your relationship with your employer. If you go in with a really low figure, you’re undervaluing your work and encouraging your employer to do the same.
How to negotiate your salary. Always expect an employer to turn down your first bid (this isn’t always the case, but doing this is a precaution to prepare you for the worst).
Go in with a number that is higher than what you’d expect, so you have room to negotiate down and arrive at the actual figure you would accept. So, for example, if you’re aiming for £22,000, you could go in at £26,000.
Also, any time you do get a payrise, put the difference between your old salary and your new salary away safely. You’re used to living on less, so the extra money you’ve recently been granted on top can be squirrelled away into your savings account!
- Lending Money To Friends When You Can’t Afford It:
This common money error to absolutely avoid comes from having a heart of gold. It’s also the most common money mistake you’ll make in your twenties. But you live and you learn!
Lending money to friends, especially when you’re already having to live modestly, is a real no-go. It creates weird friendship dynamics whereby you’re constantly tallying up their spending and thinking “that money could have been used to pay me back” every time they buy a pint.
It’ll also inevitably lead to that awkward conversation about when you’ll eventually see your money again. Best bet? If you’re struggling to make ends meet in the first place, keep your purse strings to yourself.
- Not Having An Emergency Fund:
An emergency fund is an absolute must. If you don’t have one you may find yourself resorting to short-term solutions you’ll regret in a few years time.
We’re not talking a secret stash, Breaking Bad style. An emergency fund should be just enough to tide you over if your Student Loan is late or if your phone suddenly breaks and you need to buy a replacement immediately.
Having some money set aside for a rainy day can also be really useful if, once you’ve left university, you find yourself unemployed and without an income for a few months.
There are loads of ways to make money if you’re between jobs but it doesn’t hurt to have a safety cushion aside to help you through a rough patch!
Topping up your savings account a little bit each month, even with just a few quid (or putting a penny away in a jar each day!), is a great way to get started without leaving you with little or no money to spend for the rest of the month.
Prayer Point:- Oh Lord God, help me to manage my resources well henceforth by fire, in the name of Jesus Christ.
Have A Wonderful Tuesday!