With the piles of financial advice out there—some good, some downright ridiculous—it can be easy to wander off track and let the important things go by the wayside. Here’s a one-minute reminder of the keys to true financial peace—a short read to send to a friend or stick to the refrigerator. If you start to veer off track, remember M-O-N-E-Y.

M – Make A Budget

Yellow Financial freedom road signAnd actually follow it. Everything else hangs on this. Track your spending and make cuts until there’s more money coming in than going out. Cut up your credit cards and introduce them to the nearest dumpster if you can’t use them properly.

If you need help with it, this will help get you on track.

O – Obliterate Your Debt

List all credit card, student loan, mortgage and other debt from lowest to highest amount. Throw everything you’ve got at the first, smallest debt until it’s gone. Then take whatever you were putting towards that debt and roll it into the next one. See how fast you can become debt-free.

N – Nest Egg

You need one. Aim to invest 15 percent of your household income into pre-tax retirement plans. If you have to start small, begin by investing 3-5 percent of your income (or whatever will get your full employer match, if applicable). Then ratchet up your contribution once or twice a year until you hit 15 percent.

E – Emergency Fund

Flat tires, blown transmissions, flooded basements and trips to the emergency room are part of life. It’s not a matter of “if” but “when” they will happen, so be prepared. Begin with a small emergency fund (like $500-$1,000 per person in your household).

Once you’re debt-free, up the ante and set aside six months of expenses. Then you’re covered in the event of a job loss.

Y – You Can’t do This Alone

Money management without God is empty. Pray every step of the way for guidance, and read up on all the free financial advice found in the Bible (try starting with Proverbs). Ask God to show you what true generosity looks like, and then give freely by tithing to your church and donating to causes that are close to God’s heart. Only then will you have true financial peace.

If you need a bit of professional guidance with putting a plan of action into place to resolve your debts once and for acll, call FaithWorks Financial at 888-670-5760 for a free Christian debt relief consultation.

About Kristy Etheridge

Kristy Etheridge is a regular contributor to the FaithWorks Financial blog. Having racked up a large amount of debt before using a biblical approach to attack it, Kristy is passionate about financial freedom. She and her husband live in Charlotte, N.C., where Kristy works as a writer for the Billy Graham Evangelistic Association.

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