Money Management

WORKING OUT YOUR FINANCIAL PLAN

“He who is faithful in what is least is faithful also in much; and he who is unjust in what is least is unjust also in much. Therefore if you have not been faithful in the unrighteous mammon, who will commit to your trust the true riches?”

Luke 16:10-11 NKJV

BEING FAITHFUL IN THAT WHICH IS LEAST

Jesus makes it clear that how we manage the earthly resources that have been given us is very important to God. In fact, He states that if we are faithful in this, which is the very least, we can then be trusted in the true riches of the kingdom. That means managing our finances is essential for our physical and spiritual well being.

The key to successful money management is setting up and following a workable budget. Each family's income level is different, and even that will change over time, but by using some percentages, we can get an idea of what a typical budget might look like. However, before we do this take a look at your total gross income.

After you have determined this you can start breaking down the numbers. Begin with your gross family income and take 10 percent right off the top for God. Your tithe is important, and God must come first in your financial life. After God, whether you like it or not, comes your taxes.

WHAT DOES THE WORD SAY?

Many believers make the mistake with their finances of spending carelessly instead of planning in advance. As a result, much of their money is wasted and they don't enjoy the return God intended. Don't let that happen to you. Obey the instructions about money management given throughout the Word of God.

Proverbs 27:23 Know well the condition of your flocks, And pay attention to your herds;

In modern day, what does this have to do with establishing a budget?

Ecclesiastes 9:10a Whatever your hand finds to do, do it with all your might...

In what ways can this verse be applied to money management?

Habakkuk 2:2 Then the LORD answered me, "Write the vision. Make it clear on tablets so that anyone can read it quickly. GWV
What does it mean to write your financial vision?

PLANNING A BUDGET

The amount you're left with after tithe and taxes is called your disposable income. This is the amount of money you will need to budget in order to manage your household expenses. Below is a basic breakdown to give you an idea of what a budget might look like for the average family household. It is important to know that this is just a guideline, as every family's needs vary.

Mortgage & Housing Costs:
Realistically, your mortgage will take up about 45 percent of your disposable income. However, with all the taxes, insurance, and utility costs, you may want to allocate more like 50 or 55 percent of your budget if you can afford it. If you decide to do this, you'll end up taking 5 or 10 percent away from something else.
Auto Payment:
Your car payment usually requires 15 percent of your disposable income, depending on whether your car or cars are used or new. Insurance and warranties need to factor into that as well.
Groceries:
For food, 15 percent needs to come out, which means you may not be able to eat steak two or three times a week, and you probably won't be able to take the family out to dinner two or three nights a week, either. Usually by just planning your trip to the grocery store ahead of time, you'll end up buying what you really need and not just what looks good at the moment.
Clothing, Debt & Insurance:
As for the other number breakdowns, allot 4 percent for clothing. After clothing, allot about 3 percent for other debt, including insurance costs such as medical and dental coverage.
Other Expenses:
The next three categories of importance, which will take up the rest of your disposable income are savings, recreation, and miscellaneous. All are important and you'll need to be sure to allot what you can in these three areas.

THOUGHTS TO DWELL ON

God has a part to play and you have a part to play in the manifestation of every promise in the Bible. With regard to financial prosperity, your part is to get organized and set up a budget. Design a budget that will help take you from where you are now to where you want to go.

Living within a budget is an absolute must if you want to prosper. God isn't going to put great amounts of wealth into your hands if you can't keep track of the amount of money you have now. Your budget will be the blueprint necessary to help you reach financial prosperity. Put that budget down in black and white so you can see it all the time. This will keep God's financial vision for your family clear.

Make a quality decision to establish a budget and live within your means. The ability to manage our finances is critical to our Christian witness. God has given us an eternal mandate to be stewards of the resources He has placed in the earth.