Strategies for Help

Tips for Being Financially Prepared

Making good decisions with your money helps you have confidence and be prepared for life’s ups and downs. Heavenly Father has given us everything, including our money, and He can help us use it wisely. Read on for some general tips on how to manage your finances:

Part of becoming like the Savior includes experiencing hardships during this life. Learning some basic skills can help us prepare to face challenges and disappointments with resilience. Learn how to gain these skills.

Pay tithing and fast offerings first. The Lord has promised to open the windows of heaven and pour out great blessings upon those who pay tithes and offerings faithfully (see Isaiah 58:6–12; Malachi 3:10). Paying tithing and fast offerings also allows us to live the second great commandment to love our neighbor by ministering to temporal needs (see Matthew 22:37-39).
Make a budget. A budget is simply a plan for how you will use your money. Begin with your income, and then build a plan for where your money goes, like donations, savings, food, housing, transportation, etc. Consider using the resources below and the budgeting activity in the Personal Finances for Self-Reliance workbook.
Once you have a budget, adhere to it. It can be hard to stick to your budget, and it is okay if things don’t go perfectly. Learn from those moments and ask Heavenly Father to help you.
Spend less money than you make. This is key to financial stability. It may mean that you need to look at your expenses and decide where you should spend less. It could also mean that you need to look at ways to increase your income.
Avoid debt. With just a few exceptions, like buying a modest home or investing in education, you should avoid debt. If you are in debt, try to pay it off as quickly as possible, and consider using the resources below to help.
Save and budget for unexpected expenses. Plan to have a few months of money set aside in case of an emergency, or if you lose your job or livelihood. Planning for the unexpected can help you feel less panicked when tough financial situations arise.
Save for the future. Set financial goals that you would like to achieve, like buying a home, planning for a life event, or other possibilities.
Seek education. Consider certifications, trainings, and trade school, college, or university degrees that might enrich your mind and help you make a living. President Thomas S. Monson reminded us of the blessings of receiving an education: “Your talents will expand as you study and learn. You will be able to better assist your families in their learning, and you will have peace of mind in knowing that you have prepared yourself for the eventualities that you may encounter in life” (“Three Goals to Guide You,” Ensign or Liahona, Nov. 2007, 119).