Some advisors say people should budget by saving as much as they can afford and then be free to spend all the rest of the money at their disposal, but I say unto you create a giving, saving, spending plan. They say start with 2 to 3% of your pay, if you can, and later save more when you can afford to, but I say unto you do everything you can to increase your income and right-size your spending to enable you to tithe to the LORD's Church and save at least 10% of your gross income. They say a budget recognizes that taking out some types of loans to get what you want when you want it is alright, but I say unto you the better situation you can be in if you really want to is to owe no man anything but love and refuse to be a slave to lenders because for the majority of people debt reduces the ability to properly care for things important to (1) the LORD, (2) their families, (3) wealth-building.
The problem with these advisors' point-of-view is (a) the priority they put on doing all you can to first get all the temporal material things you want, (b) it motivates you to put off saving when you do not feel like you can do it, and (c) it has no spiritual focus that pleases the LORD such as giving to spread the gospel, make disciples, and help others that are truly in need. This is not the proper priority of heart and mind for you. You should think and act upon GIVING first, SAVING next, and then upon SPENDING to care for responsibilities. Fulfilling the bulk of your desires through spending should come well after you are adhering to the first two principles.
The improper spending-based view of managing money makes it easy to condone taking on debt to keep up the lifestyle you want instead of shedding debt in order to be in good financial condition. In the spending-based form of budgeting (which some people try to masquerade as saving-based budgeting) the debt monster will eat you up and bring turmoil into your life. Because the focus is much too much on the spending side of the equation, you will set aside only a little savings and later must deplete those savings to pay on debts you should not have incurred in the first place. Finally, not knowing what to do, you will inevitably stop saving altogether and continue to take on more debt to do your own thing until you are stressed out and pressed out with monthly debt payments, high finance charges, and credit scores spiraling down as your ability to pay all the debts decreases.
Satan always attacks by tempting us to fulfill the lust of the flesh and eyes and to operate in the pride of life. He wants us to have our priorities in the wrong order and to keep them there. He knows that when he can keep you focused upon your material desires your ability to serve and be an example of Christ-likeness will remain hidden from view and may be entirely non-existent.
How you manage money that comes into your life is a very telling barometer of your spiritual condition because if you love Jesus Christ you will keep His commandments for where your treasure is, there your heart dwells also. The Word has given us specific instructions as to how true faith motivates us to good works through the acquiring of income and the giving, saving, and spending of it. No one can serve two masters. You will love one and hate the other. You cannot serve God and mammon.
Budgeting does not have to be complicated. If you will remember the priority that is in God’s heart and faithfully use it as you write down on paper / computer how you will manage the income God has entrusted to you, then you will do well in the budgeting arena and thus bring more blessing into your life.
GIVING to the work of Christ via tithing and a free-will offering should be accounted for first in your budget and given to your local Church and worthwhile gospel teaching / preaching / good works ministries.
Next, you should SAVE a reasonable portion of your income. First as a $1,000 emergency fund to help cover rainy days. After all consumer debt is eliminated you should grow it to $10,000. Then focus on creating a wealth building foundation by investing at least 10% of your gross income in a diversified array of at least seven different no load low expense stock index mutual funds that over the past several decades have historically produced returns equivalent to the average annual growth of the American stock market over the past hundred years (approximately 11%). Remember, you will get older, desire to live comfortably, travel, care for yourself when inevitable rainy days and health issues arise, and give abundantly to gospel work throughout your life.
Finally, you should focus on making sure you SPEND without taking on debt. Spending should be primarily focused on taking care of the most important priorities such as reasonable housing, food, clothing, and transportation. Fulfilling desires can and will come once you have put yourself on good financial footing and find that you have much greater disposable income.
Right-sizing spending means right now you may be unable to purchase unnecessary material things. You can use your Giving, Saving, Spending plan (income statement / cash flow plan) and wealth building statements (net worth / balance sheet) to help you determine when to purchase specific desirable things in a manner that will not put your finances in jeopardy or derail the LORD's plan for you to enter the Wealthy Place. Getting in God’s financial flow will please Him and allow you to afford some of these things in the future while you are also able to avoid irresponsible money management behavior that leads to foreclosure, bankruptcy, and the inability to properly care for your family and personal responsibilities. Faith in Him and His way of managing finances also causes Him to move in the hearts of other people (at times when it would truly be a blessing to you) to give you desired goods without you having to purchase them or engage debt bondage to get them.
Please pray for this ministry and email me with any questions. May the LORD bless you richly as you follow His plan!
Luke 6:38, 12:29-34, 14:28-30, John 14:15, 2Corinthians 9:6, 1Timothy 6:5-19
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