This program will help you undo financial bondage.
Many people think budgeting is unnecessary, however the vast majority of people who do not budget tend to be in poor financial condition and the other few will likely come into a bad financial condition at some point in their lives because they fail to currently employ this principle. Some financial advisors proclaim that budgeting is unnecessary, but we find they actually teach budgeting when we look deeper into their instructions. They often call it by another name such as pay yourself first, tracking expenses, a spending plan, income / expense plan, etc. For example, one financial advisor said he doesn’t budget rather when he receives income, he immediately sets aside a percentage to pay expected taxes, puts ten percent into a savings account and ten percent into an investment account. Then, he spends no more than what is left and repeats the process when he next receives income.
Well, that is budgeting. It’s a principle for which there are various methods to employ from simple to intricate. Generally, the more creditors you have the more intricate it will have to be to navigate the debt maze and this is what causes many to ultimately slip and fall into financial bondage and ruin. That is why you want to engage debt-freedom, so you can have a simple budget that helps you keep life in perspective and weather every storm that will eventually come your way.
Scripturally speaking, the underlying parameter is the same no matter which method is used. You should have a written plan to spend far less than your income and identify necessary alterations to your lifestyle and spending habits to eliminate all your debts. People and businesses that prosper over the long haul rely on budgeting to get on, stay on, and grow on a secure foundation. Because we help so many people who are steeped in debt get out of it and onto a better path, the method we encourage entails the following.
1. List total net monthly income. This is gross income minus taxes paid or set aside that are owed to governments and other costs that will be payroll deducted by your employer or business entity, which you do not have access to spend (health care, union dues, etc.).
2. Subtract the tithe and offering.
3. List all your monthly bills. Bills due more often and less often than monthly should be re-calculated to an amount equal to a monthly payment.
4. Now, subtract all monthly payments from your net monthly income.
The remaining balance shows whether you expect to have a surplus or deficit. If money remains (a surplus) then you can divvy it up to spend on household needs, personal items, savings, and investments. When money is lacking to pay all of your current monthly payments (a deficit), then you must look at every option possible for quickly increasing income and immediately reducing monthly expenses to get you to a financial situation where all your needs can be provided. Otherwise, you will continue to create greater financial problems in your life.
A deficit points you to one or more options to help eliminate it. First, foremost, and always necessary is seeking God’s will in worship (including thanksgiving, praise, and prayer), so God will supernaturally provide above what human effort can do. Second is making expense and spending reductions. This includes calling creditors to work out debt-forgiveness and better payment arrangements. Third is finding extra work (overtime, a new job, a second job, or a no-cost or low-cost entrepreneurial endeavor) that increases your income to a point well beyond your expenses in order to more quickly get out of debt bondage and begin the wealth building process.
When things are so tight you cannot pay all of your debts it is important to properly prioritize. Honor the Lord in tithing and giving and prioritize necessary shelter, food, and transportation above all else. Available cash flow after these expenses are calculated should be saved to build up a first-tier emergency fund (at least $1,000. After this is built, prioritize your other debts in descending order of importance (1 to 10 or so) based on the consequences of not paying them. In order to get out of financial bondage, you may have to trade in the expensive home and car for something more reasonable for your current situation. Clothing is not mentioned as a priority expenditure and can be eliminated from your budget when you have more than enough to make it through a rough financial period or the budget can be greatly reduced when you can get needed pieces free or low cost from thrift stores, churches, friends, and family. Food expenses can also be eliminated or greatly reduced when you have access to free or low-cost food from local food banks.
Short-term and long-term planning of anticipated income and expenses is vital to your financial well-being because it lets you know what you can reasonably purchase now and months into the future. A deficit lets you know there is a financial problem that needs correction and a surplus lets you know there is money left over that must be managed correctly in order to properly care for your family and engage the Great Commission and your specific work, career, and ministry purpose while on Earth. Budgeting is equivalent to knowing the state of your flocks and herds so your wealth can endure beyond your generation. Diligence in mapping out your financial future month-to-month and year-to-year (budgeting) is what it takes to repair damaged finances, maintain good financial health, and build wealth.
Proverbs 27:23-27, Habakkuk 2:2-4, Luke 14:28-32, Philippians 4:11-13
Please pray for this ministry and email questions to parlor@ameritech.net and share the links below with others who need guidance. May the LORD bless you richly as you follow His plan!
Share http://kminfo.org/ministries/financial-freedom weekly with family and friends so these bondage-breaking articles and other financial information can help them gain helpful insight!
The book at the link below provides principles and practical steps that help you use the Power To Get Wealth. By 1992, we had $135,000 of debt and a negative $35,000 net worth. Financial bondage and turmoil led me to seek principles and a process for employing good stewardship. As a result, we became constructively debt-free in 1998, mortgage free January 2004, millionaires in 2012, multi-millionaires shortly thereafter, and retired in 2018 in my mid-fifties from public servant jobs while giving abundantly to fund the gospel of our LORD Jesus Christ. The same power is available to you!
https://www.amazon.com/Power-Get-Wealth-Randy-Parlor-ebook/dp/B08QCH5MVH/ref=sr_1_2?keywords=Randy+Parlor&qid=1638336718&s=books&sr=1-2
You can find books authored by Randy and Karen Parlor at www.Amazon.com.
You can also connect with Randy Parlor on Facebook, Twitter, Linkedin, Instagram, Google Blogger, WordPress, Jesus Social Network, Social Cross, Pinterest, Tumbler, and You Tube.
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