Short Term Planning

If cash shortages require you to use credit cards, try short-term planning.

Planning takes a little time but can save you a lot of headaches. Consider the ant. Solomon said, in Proverbs 30, that they’re small creatures of little strength. They wisely store their food in the summer when times are good. Then they’ll have what they need when times are bad. It’s an example for us to follow.

Take your utility bills. By averaging them over one year, you can store money in a savings account from low-use months to offset the cost of high-use months. Or, your utility company may have a plan that allows you to pay an average, constant amount each month. Clothing, medical, and dental costs are also good candidates for short-range planning. These occur on an irregular basis, and without adequate reserves, you’ll find yourself turning to credit cards. So, set aside an average monthly amount for these needs based on how much you spent the year before and how much you expect to spend in the coming year.

You can plan your vacations in the same way by establishing a vacation budget and dividing that amount by 12 to determine what must be set aside on a monthly basis. In addition, you need to include appliances in the short-range planning process.  When a dishwasher or clothes dryer suddenly quits working, replacement costs can be shocking, and of course, there’s your car. Set aside something each month for repairs and maintenance, so you don’t have to rely on credit cards when issues arise. Just remember the ant, because they plan for the future. 

If you’ve got shortages due to credit card debt, I recommend Christian Credit Counselors. They’ll create a debt management plan that works for you. For more information call the Crown Helpline: 800-722-1976 or visit online at crown.org/ccc.