There’s a problem though.  Up to this point, you were able to take your buffer margin and roll it into the next step.  If you had an extra $500.00 per month going towards your first $1000 saved (simple step 1), you could take that $500 and use it towards your credit card debt (simple step 2), your consumer debt (simple step 3), your emergency fund (simple step 4), your retirement savings (simple step 5), and finally 10% personal savings (simple step 6.)   Now, the 10-15% retirement savings and the 10% personal savings can’t go with you into the next phase.  Something’s gotta give.  I can picture Spencer Pratt from the Hills saying, “That’s the problem.”

"That's the Problem"

What to do? What to do?   As we’ve previously discussed, in order to create more margin/buffer, you must either raise your income or lower your expenses.  If you are like me in this phase, I am sick of lowering expenses by now.  I have had a really crappy car and really crappy phone for way too long.  I’m okay with that, but I just don’t have room to get any crappier.  I’m sorry, Mom, for using that word.  I know, we don’t say that word. (But I’m typing it..hehe)  But it’s true.  I am left with no other choice.  I choose to raise…income.

Here are a couple ways to raise your income.   

Start a side business

Work Part Time

Get a Raise at Your Own Job

Get Promoted at Your Own Job

I will go into each in more detail at a later time, but all four are feasible ways of increasing your income.  Once you get into Phase 3, you will realize that the remaining steps are not very difficult to achieve.  I’ve figured that we will need an additional 7% income to reach Phase 3, Step 3.  Again, we’re not going to go back working 2-3 jobs like we should in Phase 1, but we are confirming our financial success do doing a little extra and going above and beyond. 

If you are ready, (I hope you had a good celebration from the Phase 2 victory) let’s begin Phase 3.

I will never forget 2008 when we were out of debt and building our emergency savings.  We felt called to give a large sum of our savings to the building fund for our church.  Dana definitely has the gift of giving and was totally fine with being obedient, no questions asked.  On the other hand, I wrestled with this for a while and tried to crunch the numbers in my head on how this was going to work out.  I will never forget in my plea to God.  I said, “Just give us some more time.  I want to be a generous giver.  I want to be the one that makes a $50,000 donation when we have $200,000.00 invested.”  It immediately occurred to me that God was calling us to give 25% of our savings, precisely the same percentage as $50,000/$200,000.  It was then when God prompted me with Luke 16:10, “If you are faithful in little things, you will be faithful in large ones. But if you are dishonest in little things, you won’t be honest with greater responsibilities.”

It didn’t take long after we gave that amount for us to get caught up and well past where we were when we gave above and beyond our tithe.  Is God calling to take a step of faith with your giving?  Be obedient, and you will get that breakthrough that you are looking for.