Why can't our nation live within its means? Why do Christians, who make an adequate income, always seem to have an inadequate supply of money to take care of their needs?
Managing Money for God's Good, our Own Good, and the Good of Others: 1 of 5
"Budget as Boss Means Blessing"
(Children's Sheet for Sermon Interaction is at bottom. Notes are throughout sermon)Pastor Kerry Kinchen, Bridgeway Bible Church
This morning I want to address an important subject. The subject is greatly needed in our contemporary culture. People everywhere today are grossly absent of it. The current administration of the secular government of our nation has completely dropped the ball concerning it. You can see the failure in statements such as,
"I think when you spread the wealth around, it's good for everybody."--BH Obama
That statement is code language for saying that it is good for your public servants to take your money away from you that you earned, and then give it to someone else that did not earn it.
Or in this one,
"We have to go spend money to keep from going bankrupt"--JR Biden Jr.
That statement is code language for "foolishness."
Our current government is not the only entity that is having a problem in the area I am addressing this morning. Christians are in need of properly operating in the subject. Many people think they already have it, but they really don't. The subject I am talking about is:
Wise stewardship of money.
For us Christians, I am talking about wise, godly, stewardship over the money that God has entrusted us with. God wants us to glorify Him, and this means He wants us to glorify Him in the way we make, manage, and spend, money. As we proceed, I think I must explain that I am not going to tell you how to invest money, or what career to get into, or anything like that. I am not an investment counselor. I am not a career advisor. This morning, I am going to focus on one main area. I am going to teach on godly budgeting. This is the first sermon of a series I plan on doing over the next weeks. I intend to teach biblically based principles that will help us manage money for God's good, our own good, and the good of others. If you abide by the Biblically based truths in this series then you will be blessed concerning the resources God has entrusted you with. With this in mind, please prepare your heart to learn principles, along with me. The theme of the sermon is,
Managing Money for God's Good, our Own Good, and the Good of Others: 1 of 5
"Budget as Boss Means Blessing"
[Prayer]
This morning, I want us to consider 3 principles that will help us recognize, learn, and practice budgeting as blessing. As we get into the first principle, I want to point out that most sayings that people call "cliche's" are only considered to be cliche's because they are true. Sometimes these kinds of wisdom packed little sentences are called aphorisms. An aphorism is a very short, brief, but fully loaded statement of a principle. There is a strong one that I think is perfect for moving our minds in the direction I want to go. It is the wisdom packed proverb;
"Those who are failing to plan, are planning to fail."
/1/
This is our first principle, which is an aphorism:
"Those who are failing to plan, are planning to fail."
When we think about this, we can consider what it is like to start a project; and as we go along, we realize that we do not have a tool that we need. It could even be a resource. The point is that we find that we are lacking something to get the job done. Now we are in a mess. Cooking can be like that. You start putting together a recipe, and then as you get going, you realize that you do not have an important ingredient. Or, you get into the process and you realize that there is a certain pan that you need. The problem is that you are already using it to cook something else. Or you might be working on a wood project. You measure everything; your cuts are precise; but then you realize that you do not have something you need to move on to the next stage. This is the way it is in so many areas. In the various pocket of our lives, we realize that if we plan beforehand to account for our resources before proceeding, our accounting will reveal to us whether we would fall short of our goals because of a lack of an important resource. Those who are failing to plan, are planning to fail, so, instead of leading their circumstances, their circumstances end up leading them. They become victims of circumstance. This is exactly what is happening with many of God's people when it comes to God's money-resources that He has entrusted them with. They fail to plan on how to keep money, save money, and spend money to glorify God. They have given their lives over to becoming victims of circumstance rather than honing and disciplining combat skills to be victors over circumstances. We want to be victors rather than victims. Money management, in the form of a godly budget, is a powerful soldier to call upon in our fight for victory. There are other things as part of the strategy: like a career, wise investments, prudent purchases, and a savings plan. But, among them all, the humble, ever-toiling, often overlooked, and under appreciated, budget is a powerful behind-the-scenes warrior. His whole purpose is meant for protecting God's financial provision to us. When you give your budget the power, boss budget calls the shots, and when he calls the shots we stay on the road of victory. Many people who know me have heard me use the terminology I am preaching this morning. They have heard me say that "budget is the boss." When I say this, I am meaning that the budget, that my wife and I have, is our tough money manager. But I am not meaning that boss budget is a tyrant. I am meaning that our budget is our friend. Please hear what I am saying:
Our budget is a strict money manager, but that is exactly what we want it to be. The reason is because we love the amazing blessing benefits of a strong godly budget. If your budget is a wimp, then it will fail you. Part of this means that the only way to get the blessing is to stick with the toughness of boss budget.
I did not always know these things. Growing up, I was not taught about budgeting. I was not taught about the curse of the debt spiral. When I was younger, I lived the other way. Money just seemed to disappear after I earned it. Ironically, I thought I was saving it. I constantly felt like I was living in need even though I was making plenty of money. When I did not live with a budget as my ally, I always had too much month at the end of my money. How many of you have too much month at the end of your money? It reminds me of another wise proverbial observation;
"If your outgo exceeds your income, your upkeep will be your down fall."
This is a real problem--both in our culture, and in our churches. Not only are many of God's people not paying their bills, getting things fixed when they break, buying groceries, and so forth, while making an adequate income (yes, an adequate income) but they are also being hard hit in other ways.
<a>
For example, when a Christian is financially flashburned, then they look that way to unsaved people who are analyzing the "Christian lifestyle." Consequently, those unsaved people start to wonder about the Christian's character. That person becomes a stumbling block. I am not talking about the fact that they are having a hard time making ends meet because they have a low income. I am not talking about the fact that financial emergencies are taking their toll. What I am talking about is the overall witness of a Christian who should be, and can be, making the payment of their bills by controlling their spending habits. Others recognize it. They recognize that the lifestyle does not match the true financial state. Since the outgo is exceeding the income, the upkeep is a downfall when it comes to glorifying Christ as a Christian witness with this aspect of their life. The Spirit is concerned about this. This is why we read,
"aspire to live quietly, and to mind your own affairs [business], and to work with your hands, as we instructed you, so that you may live properly before outsiders and be dependent on no one." 1 Thessalonians 4:11-12
@1 God wants us to live quietly, mind our own affairs, and work, so that we will behave ___________________ toward those who are outside of God's salvation by not being dependent upon them. 1 Thessalonians 4:11-12
Minding your own affairs, and living properly before outsiders (which are lost people) is a concern in planning to succeed in glorifying God by living on a wise budget.
<b>
This point leads directly into another way that failure to live within one's means, because of not managing money, eventually manifests itself: They become a burden to other people. It could be the immediate family in the household. It could be family outside the household. It could be friends, neighbors, society, or whomever. The point is that one's financial burden is a downfall that affects others. Paul is indicating that to be a burden to non-Christians, is to not behave properly toward them.
<c>
Another way Christians are inhibited, because their outgo exceeds their income, is in not being able to operate in the ministry of giving. Since they are undermined by overspending, they are so overwhelmed that they are unable to give to help others overcome their emergencies. Further, they are not able to help support various ministries of God's word. God has ordained the church to supply the money for ministry. God does not make it grow on trees. It comes from the body of Christ, which is people. But if we do not have the resources, then the ministry of giving money for ministry is absent from our lives.
<d>
One last detriment that I'll mention has to do with your own relative freedom and peace of mind. Your downfall is that you become down trodden. Worry, anxiety, unsurety, arguments, creative excuses, discontentment, and regret, starts to become part of you. It effects your personality. It effects your marriage--the way you communicate. This describes people who consistently spend money they shouldn't on things they don't need. Or they spend other people's money. As a result, they must pay back the money, but with added interest; or they get into the credit card debt spiral of impulse spending. Impulse spending is the imprisoning liar that promises you freedom by whispering in your ear,
"Buy now, pay later."
But wisdom is telling you the truth;
"Today you reap, but tomorrow you will weep; and the next day, and the next day, and on, and on."
This first principle, then, is that those who are failing to plan, are planning to fail. This leads us to the second principle.
/2/
The second principle for recognizing, learning, and utilizing a godly budget, is that our budget is truly a plan for success. To understand this principle, we need to see some biblical elements that deal with the essential aspects of budgeting. One thing I've noticed, that needs to be addressed concerning this whole subject, is something I have mentioned already. It is wisdom. Wisdom is built into the foundation of reaping the blessings of a godly budget. We read in Proverbs,
"Prepare your work outside and get everything ready for yourself in the field; afterwards, then, build your house." Proverbs 24:27
The wisdom is that we get our plan together; take stock of our resources, and make sure we are ready before proceeding. Money is a resource. You only get a certain amount of this resource to save, or, to spend. The importance of wise planning concerning our resources is the principle,
"By wisdom a house is built, and by understanding it is established; 4 And by knowledge the rooms are filled with all precious and pleasant riches." Proverbs 24:3-4
@2 We experience God's blessings of pleasant __________________ by applying wisdom, understanding, and knowledge. Proverbs 24:3-4
How is anyone going to manage their money according to wisdom if they do not have understanding in the first place?
How are you going to reap the benefits from the knowledge, if you do not get it, accept it, learn how to do it, and then do it?
When it came to proverbially filling my own rooms, based upon the budgeting resources principle, I had to discover the wisdom. Though Laura and I have made, and make, well below the national average when it comes to income, by applying the wisdom of budgeting, our rooms have been filled with resources for living within our means, which is the blessing. But I had to discover this wisdom. Before Laura and I got married, I bought a used book at a thrift store. It is a thirty year old book written by the late Christian financial counselor, Larry Burkett. The title is,
"What Husbands Wish Their Wives Knew about Money."
How many of you think I bought that book for Laura? I bought that book for me--yes me! As a future husband at the time, I wished this future husband knew about money. The main thing that Larry Burkett taught me in that book was the importance and value of the budget. He gave practical illustrations of lives that were turned around. They were people barely making minimum wage. They were also multi-millionaires. He explained how they all benefited immensely from budgeting. The book imparted biblical wisdom, but I had to discover the wisdom, accept it, and then practice it. Essentially, Proverbs 24:3-4 is teaching us that, in wisdom, knowledge, and understanding, we plan to succeed, and so we plan in the first place, then according to following our wise plan, we reap the rewards. A foolish man, on the other hand, squanders his money to his own detriment,
"20 There is desirable treasure, and oil in the dwelling of the wise, [that's resource] but a foolish man squanders it." Proverbs 21:20
@3 The foolish squander their __________________. Proverbs 21:20
God gave us these wisdom words of the Spirit, in Proverbs, to impart His wisdom for action. Now, let's look at a Proverb that directly deals with budgeting resources. We read,
"Know well the condition of your flocks,
[Notice the knowledge, understanding, and wisdom here. It is assessment and planning. Flocks are resources. For our purposes, money is our flocks. Going on,]
and pay attention to your herds;
[this is more assessment of your resources]
24 For riches [which are resources, like money] are not forever, Nor does a crown endure to all generations.
[It is wise assessment to know that resources go away. Now comes more wisdom with the foresight and planning,]
25 When the grass disappears, the new growth is seen, and the vegetation of the mountains is gathered,
[This is a wise assessment of diminishing and replenishing]
26 The lambs will be for your clothing, And the goats will bring the price of a field,
[This is budgeting resources]
27 And there will be goat's milk enough for your food, for the food of your household, and sustenance for your maidens. [This is the blessing]" Proverbs 27:23-27
The principle is that in knowing your resources, plus paying attention to your resources, and making wise decisions with your resources, you will reap the blessing.
Joseph, of the Old Testament, practiced this principle. Joseph interpreted Pharaoh's dreams and realized that seven years of abundant harvest were coming; but Joseph also foresaw that the seven years of abundance as resource were going to be followed by seven years of famine. So, when Pharaoh asked Joseph what should be done, Joseph said,
"33 ... select a discerning and wise man, and set him over the land of Egypt. ... appoint overseers over the land and take one-fifth of the produce of the land of Egypt during the seven plentiful years. ... gather all the food of these good years that are coming and store up grain ... for food in the cities, and let them keep it. 36 That food shall be a reserve for the land against the seven years of famine that are to occur in the land of Egypt, so that the land may not perish through the famine." Genesis 41:33-36
Pharaoh appointed Joseph as the "wise man," and Joseph implemented his budget plan. This is what we want from this principle. We want our budget to be a plan for success. Joseph was smart. He budgeted the grain resources of Egypt in a savings account. It was godly wisdom that brought blessing. After storing up income, when the time of need arrived, Joseph demonstrated that he had succeeded in planning so that he would succeed. His outgo did not exceed his income, so Pharaoh kept on prospering in the hard times. We see the same principle in a parable that Jesus told. Jesus reiterated simple principles of wisdom,
"28 For which one of you, when he wants to build a tower, does not first sit down and calculate the cost to see if he has enough to complete it? 29 Otherwise, when he has laid a foundation and is not able to finish, all who observe it begin to ridicule him, 30 saying, 'This man began to build and was not able to finish.'" Luke 14:28
There are vital principles of wisdom to be found in all of the examples I've given. Take Jesus' illustration for instance. It is a parable. Let's borrow some of the metaphor for our own lives. Each month, for example, is like a building project where we are building a tower. The tower we are building each month is called;
"Spending Required for Living Based on What I Make Tower."
Our goal is to do this without spending money that we do not have, while paying interest on it that we can't afford. Expenditures required for living, based on what we make, are things like bills, insurance, clothes, food, car repairs, minor emergencies, and all of these kinds of things. This is the tower we need each month. So, once again, let's call this our,
"Spending Required for Living Based on What I Make Tower."
The budget is what helps us complete our tower by the end of each month. Building our tower every month will be like filling our rooms with treasure each month. It will be like having herds that produce every month. It will be like having enough grain in our storehouses every month. This is what we want. We want more money left at the end of our month than month left at the end of our money. Every month, most of us are laying a foundation with our resources in paying our bills, in buying clothes, buying food, doing car repairs, paying for gas, changing the oil, taking care of minor emergencies, buying knick knacks, spending on entertainment, getting the latest electronic gadgets, taking a trip--the spending goes on and on and on. But some of us are building a faulty foundation. Instead of building on the blessing of the budget, we are crumbling under the curse of the credit card company. We are experiencing what the people of the land experienced when the famine finally came to Egypt after Joseph had stored the grain. During the first seven years of plenty, the rest of the people of Egypt did not have the supernatural wisdom, knowledge, and understanding that Joseph had. So they just went on with life without preparing themselves for what was about to take place. They did not have a budget to handle their upcoming needs. So, here is what happened; while on the budget, Pharaoh sold grain to the people through Joseph's wisdom. The people finally ran out of money. Since the people didn't have any more money, they began selling their property to Pharaoh in exchange for grain. When they ran out of property, as resources to draw upon, they got trapped in a debt spiral where they finally sold themselves and their own children into slavery under Pharaoh. They did this so they could eat. The ultimate end was that Pharaoh obtained full ownership of all the money, possessions, and people of Egypt. They became enslaved. You and I, on the other hand, have been given wise insight like Joseph. We know that famine awaits us at the end of each month if we do not budget our income according to our
"Spending Required for Living Based on What I Make Tower."
The type of foundation we are laying each month will determine whether we can build the tower of having enough money to take care of our essentials.
/3/
This leads to the third principle for recognizing, learning, and utilizing, a godly budget as our boss for blessing. Once we have grasped the first two principles:
1) those who are failing to plan, are planning to fail.
and
2) our budget is a plan for success.
then we need to actually be discerning and wise like Joseph was. We need to know how to implement the plan, and then actually implement it. This requires that we actually do something. We need to take real steps, in a real direction, or else this is nothing but another interesting teaching that could help you, but is left on the shelf instead.
--a--
If you choose to manage your money with a budget, then personal action step a) is that you, your spouse, and your children, must understand that you have made the decision to budget in a godly manner to build your monthly tower. The children must recognize that your budget is the boss. Our spouse must recognize that budget is boss. This is important; everyone must submit to boss budget, or it will not work. If everyone is not on the same page, then there will be money leaks. Where there are money leaks, there is an impotent budget. And an impotent budget is no budget. Husbands, it is primarily our responsibility to ordain a godly budget in our homes. Wives, and children--your responsibility is to submit to his decision. God has placed us husbands as the leaders in our homes. So, this means that God has made us to be the ones responsible for our financial situation. We are the ones to appoint a budget as our boss and discuss the whole plan with our family. This does not mean that the husband must do all the allotment procedures each month in keeping the books. If our wife is better at crunching numbers than we are, then it is probably a good idea for our helpmates to keep the records and crunch up those numbers. The point is that a budget will not work if everybody does not receive it and submit to it, and this starts with the authority of the household. Accordingly, the rest of the household, in conjunction with God's word, submits to living on budget. There are two reasons why I am strongly urging this requirement. One is that biblically the husband is the head of the home, and so he has full authority and responsibility, according to such passages as 1 Corinthians 11:3, and Ephesians 5:23. The responsibility is made clear in 1 Timothy,
"8 But if anyone does not provide for his own, and especially for those of his household, he has denied the faith and is worse than an unbeliever." 1 Timothy 5:8
The man is responsible, according to "the faith" (which are the doctrines and precepts of the realm of Christ) to provide for his own. The rest of the household must submit to his decisions. Another reason I am so strong on this is because husbands have often been culprits in cursing, in a sense, their households financially by not taking wise, responsible, leadership over this area. The point is that leadership with a budget starts with another leadership issue, which is the God-ordained head of the household. So, personal action step a) is that your household agrees to build your monthly tower according to wise godly budgeting. Everyone submits to the fact that your budget is the boss.
--b--
If you choose to manage your money with a budget, then personal action step b) is that you follow your budget, and you never stop following your budget. This means you do those two scary words that are really blessings:
You submit and commit.
Submit and commit means you will not make any spending decision without first consulting your monthly budget. It does not matter how wonderful that gadget is. If you have not budgeted to spend money for it, then you wait. It does not matter if you are tired and so you want to go out to eat. If you do not have money budgeted for it, then you wait. The point is that if you think you need that gadget then you budget for it. When you get enough money, then you buy it with what you have, without paying interest, and, without losing money that you will need later on for other needs. You see, you only think you need to eat out. The fact of the matter is that you only "want" to eat out. But because you are committing to wisdom and obeying boss budget so that you will be blessed in the long run, you do not eat out just because you want to. Instead, you eat out because it is budgeted. You see, it is not that you are giving up eating out; it is just that when the time comes to eat out according to your budget, then you reward yourself with the blessing of properly building your tower. In other words, though you don't "need" to eat out now, but since you want to, because you may equate eating out with blessing, then budget for it and you will be blessed all the way around when you do. Your wonderful budget, which blesses you and cares for you, may tell you that you can only afford to eat out once a month. Good; then have fun eating out once a month. You may only afford to eat out once every two months. Good again; you are being blessed because you are building your strong tower each month. So, every other month you have the added reward of a restaurant date built into that month's tower. You may be able to budget to eat out one, two, three, or four times a week; or even more. Good again; but, you still must budget for it if you want the blessings from your budget to permeate your life. This is a discipline issue. It is a wisdom issue. The bottom line on this actions step b) is that you must consistently submit and commit to your godly budget. This leads to the very important personal action step c).
--c--
Personal action step c) is that you must commit to being patient. You must fight the good fight of waiting to make purchases until your budget gives you the "okay" to do so. In simpler terms, waiting and patience are not options. They are necessities. This means that impulse-buying is the enemy. It is the liar who comes to tell you that it is really a blessing. But that insidious foe called "impulse buying" and his message,
"Let's do it now cause somehow it's all going to work out anyway"
is deceptive. It will pat you on the back while leading you into the bondage and downfall of the down trodden. You must fight this tower destroying adversary by trusting in your godly budget. The enemy will come along and say,
"Hey forget your budget just this once. You want this now don't you? Well what are you waiting for? Do it now! After all ... somehow it's all going to work out anyway."
Instead of believing the enemy, we look to our faithful friend. You look to the boss budget and ask,
"Can I do this now?"
Boss budget is an honest counselor who has your full blessing in mind. When your budget says,
"No, you don't have the money to spend that you think you do,"
then you look at the impulse and say,
"No. I am supposed to wait and be blessed."
This leads to personal action step d).
--d--
Personal action step d) is that you must set up a budget according to a working pattern to get the blessings from it. I want to make it clear that this is simpler than it may seem. It is really a very easy process. But the ease of it is not as important as the overall benefit. So, even if it were a complicated process, it would still be worth it. The point is:
Do you want to be wise and reap the blessings from a budget?
To do so, you must set up your budget plan. In going into this, there are perhaps an endless number of ways to set up a budget. To set up what I call a "godly budget" you must do it according to biblical principles of wisdom, virtuousness, and the fruits of the Spirit, where you recognize that you are doing it for God's glory. Staying with that important detail, most budget systems, that are explained by reputable financial advisors, work well. There probably is not just one perfect way to set up a budget, but there are certain characteristics of all budgets that make them similar and effective. For example, all good budgets take into account your estimated income before allotting where, and how, it needs to be spent. Along with that, there is a breakdown of where your expenditures are going to go. You can find some good budgeting systems and software from various Christian financial ministries. Those kinds of organizations can help you calculate, implement, and stick to your budget. They are all similar; but at this time I am going to give some basic guidelines. I am also going to share how Laura and I budget. What this will do is demonstrate a solid set of principles to work from in developing a budget.
{1}
The first thing that Laura and I did, which is the first thing I suggest that you do, is get an overall average of your monthly income. This is easy if you are drawing a paycheck. All you do is calculate how much money you bring home each month. Assuming all of your tax withholding has been held back by an employer, then you easily know how much your take-home pay is per month. If your income fluctuates, like in commissions, or market driven business swings, or in profit fluctuations in a business, then the process of finding a base income amount is different. You may also have various income sources, whether in investments, in other businesses, or jobs, etc.; but you calculate your income the same way. The way Laura and I did this when I had fluctuating income is we looked at my monthly income from all sources over the previous 12 months. Next, we averaged out the total over the 12 months. The average is called the "average monthly income." This gives the figure for how much money there is to work with to build each monthly tower and make sure it comes to completion.
{2}
The next thing we did, and I suggest that others do, is make a list of expenditures of necessity for each month. These are called the "fixed expenditures." The way to come up with this, is to make a list of what the monthly bills are according to the monthly spending over the last year. Some costs will need to be averaged out, like the water bill, and the electricity bill, because they can fluctuate. Each monthly bill category should have an average. The average is what is called "fixed" even though it may fluctuate. It is fixed because we know that this is what absolutely must be paid each month no matter what. To give you an example of how such a list looks, I will give you one that very closely matches the one that Laura and I use.
"Top Priorities," and "Fixed Expenses"
are at the top as headings. Then comes
"Variable expenses"
····> Our first two budgeting items come under "Top Priorities." Here we put,
Giving: (We put 10 percent aside for the ministry of God's word. This is part of making our budget godly. It is not an Old Covenant Tithe. It is our New Covenant giving, cf. 2 Corinthians 9:6-8. Often we have given over 10 percent. There have been times that we gave less than 10 percent)
Savings: (many experts recommend 5 to 10% minimum of your take home pay. We put 5%)
These are our top priorities. ("Investments" can be put into this category for those who invest money. A retirement fund category can be here, and also a future provision for children to go to college or financial help in their future.)
····> The next category list is the "Fixed Expenses" list. Here we have,
Home Insurance: (Laura and I pay this because it is not in a mortgage payment)
Medical Insurance
Life Insurance
Car Insurance
Water Bill
Electricity Bill
Rent or Mortgage Payment: (Most people have this category. It usually has Home Insurance, interest, property tax, and school tax as part of the overall payment)
Income Tax: (If self employed, which is what the Government says that full time vocational pastors are)
Property Tax: (Laura and I pay separately from a mortgage)
Telephone
Car inspection & Registration: (Total for year ÷ by 12 months, for 12 monthly increments)
Internet
····> The next category list is the "Variable Expenses." Here we have,
Groceries
Gas
Car repair, tires, and oil changes: (You must budget for car maintenance. Do it. Budget is boss, and he will bless you)
Appliance repair: (This is a necessity because appliances will break and we must be ready for it. Budget is boss. We trust him. His job is to bless us.)
Hair cuts
Clothing
Entertainment: (which encompasses eating out, music, and things like that)
Allowance: (for each member in family)
Nutritional Supplements
Medical & Dental: (Outside of Insurance)
General miscellaneous
Home school
Gifts
Excess for "buffer" or emergency: (This is not the savings account. It is emergency buffer money)
This very closely matches the budget list that Laura and I use. These are the things in the plan for building and completing our monthly tower.
{3}
The next thing we do is work on the goal in wise budgeting of making each payment that is due in each budget category by months end. Each month we know that our tower is built because we know that we have met our goal in each category. The budget has dictated what we do; we do it, and so we have been blessed. We have succeeded in not allowing our outgo to exceed our income.
{4}
Laura and I know that there are some good computer programs and methods for tying it all together, but we use a simple ledger right now. We enter the amounts that are spent out of each category throughout the month. As we spend for each category, we look at the balance throughout the month to keep an eye on what is going on.
{5}
There are some other budgeting methods that teach that after each category of your budget has a zero balance at the end of the month, then you should move all money not used during the month over to "savings." This is so that during some months, where utility bills fluctuate up higher than expected, you can transfer from savings back into the budget. This method works, but Laura and I do it a little differently; and it works well for us. Our method is that whatever we don't spend in our projected spending for some unusually low categories, like the electric bill on low months, or entertainment, we will move that left over amount that did not need to be spent, over into being part of next month's money in that exact same category. Then the next month, that money is already there. This is really helpful with things like electricity bills, or water bills, where they may be lower in one season, and higher in the next.
{6}
Additionally we have that "buffer" money which is what we call the "excess" from income that is not allocated to any category. The excess category is the buffer that we also use to help cover fluctuations where certain bills spike way up for some reason. The excess account will help eliminate surprises and it brings further victory over that enemy called circumstance which seeks to victimize us. So principles {5} and {6} that Laura and I practice, are very helpful in keeping us ahead of the game in planning for fluctuating circumstances.
{7}
Another thing we try to do is be wise if we go over what is budgeted in one category because of an emergency, and we don't have enough "buffer" money to move over and refill the category. The way we fix this is that we must take out money from another category, such as "entertainment" or "miscellaneous," to cover it. With us, "entertainment" always dies first. The reason is because we can always find ways to entertain ourselves as a family without spending money. Taking money from another category is allowable but requires a specific decision each time a transfer of the money is made. For example, you may decide to give up entertainment money to buy food, or clothes. The budget will allow you to do this, in wisdom, because you will be able to look at it and think about what you are doing rather than being arbitrary. Just remember that "arbitrary spending" is as deadly as it's seductive cousin called "impulse buying." Arbitrary spending is not wise spending. Arbitrary spending leads to curse. Wise budgeting, on the other hand, leads to blessing.
{8}
The last thing that I want to share that Laura and I do while working out our blessing plan for building our tower each month, is that we keep reminding ourselves that we don't need to panic if our expenses exceed our income because of emergencies. To stay on target, we remind each other that God is sovereign. We pray, making our requests known to God, and we continue to budget. Because of profit making issues like a reduction in pay, getting fired, getting a lower paying job because of a job change, or being hit hard by emergencies, it is sometimes necessary to revise a budget by reducing spending as much as needed. This is part of the blessing of the budget, where time, consistency, and commitment, will bring reward once again of finishing the towers for each month. There is one more thing in the third and last principle this morning. I want to leave you with a final personal action.
--e--
It is step e) of the principle on implementation. It is that if you are going to practice the wisdom of living by a budget, then you need to start soon. You are only going to reap the benefits of a godly budget, if you actually budget. Don't say,
"Well, I'll start living by the blessing of the budget, but first I want to buy something that I know I won't buy if I am budgeting."
No. This kind of thinking has missed the whole point of what I have taught this morning. That way of thinking is just one reason why financially defeated people are in the situation they are in. One of the primary principles in budgeting, is to quit spending money on anything but the bare essentials right now as part of your immediate budget plan until the rest of the budget is written down. To do so now, is to recognize that your budget is boss even before there is a formal list of categories in place. The point is to bless yourself right now, by keeping your money now, as you begin taking budget steps right now.
Setting up a budget for blessing, is just one thing that helps us to manage money for God's good, our own good, and the good of others. If you have done so already, then you know what I mean. If you have not already done so, then I urge you to set up a godly budget. Then, you too, will reap all the wonderful blessings from it for the rest of your life. (amen)
@1 God wants us to live quietly, mind our own affairs, and work, so that we will behave ___________________ toward those who are outside of God's salvation by not being dependent upon them. 1 Thessalonians 4:11-12
@2 We experience God's blessings of pleasant __________________ by applying wisdom, understanding, and knowledge. Proverbs 24:3-4
@3 The foolish squander their __________________. Proverbs 21:20
