Part III Living on the Ninety LIVING ON THE NINETY - Working It Out and Household Budgeting

WORKING IT OUT & HOUSEHOLD BUDGETING

I.      Why Do We Need a Budget?

Budgeting can have constrictions; however, it does wonders for an over-all financial picture. Budgeting helps us see where our money really goes and where we have been SPENDING CARELESSLY!  It takes very little effort to create and maintain a budget. Think of it as a tool for organizing cash flow. You are the CFO, and your job is to insure your family has what they need each month with over flow in the bank.

1.      Paid Monthly – Monthly expenses

2.      Paid Bi-weekly - Every two week expenses

3.      Paid weekly– Each week expenses

II.          How to Budget When Your Paycheck is not the same?

A.   Your budget should be based on your lowest pay expected. This way, when your pay is more, you have an extension and can save for when it is low again. The extra can be used     in several ways.  Make sure you are intentional and identify what those ways are and that they are beneficial to the family’s well-being.

B.     Plan to pay extra or if possible, double on the smallest bills first. This will get them paid off earlier. Always review all of your bills' minimum due and interest, organize all your bills so that they are paid consistently on or before the due date depending upon your pay schedule; but never late. You can sometimes negotiate with your creditors the date the bill is due to make your bills consistent with each other so that you are not paying bills all of the month.

C.    Always consider putting some amount; whether, small or large (whichever is feasible)        towards savings for emergency, retirement fund, vacation, etc.

It is usually a good idea to have more than one account for your streams of income. However, always consider a bank or institution that does not charge fees. For example, $10.00 - $20.00 weekly to build your savings, etc. You will be surprised at the growth in such a short period of time           if you are consistent and intentional.

III.       Suggestions:

1.      Regular paying accounts

2.      Savings account

3.      Emergency and repair

4.      Vacation and or family travel

5.      Miscellaneous account

IV.        Importance of the budget

Establishing a budget may be challenging and initially may require some time. However, it will pay off in the long run. It will require lots of organization, scheduling and intentionality. The most difficult part will be getting started and remaining consistent. Keeping paper trails of every penny spent from the household, keeping receipts maybe at first, until everyone is comfortable with what you’re doing. Updates to the budget are very important. Getting the family involved, including your spouse, to buy into the idea and being able to explain why this is important to the family as a whole is necessary. If this does not happen, for these very reasons, many budgets fail and financial frustrations set in, which is the plan of the enemy.

V.          Importance of self-control

Lack of Self-Control in spending and not anticipating unexpected expenses can be a great pit-fall for a budgeting plan. Developing a budget depends a lot on the individual and how serious they are about their spending. There are as many ways to budget as there are salaries and pay periods, the key is to get one and stick with it. Always allow yourself at least four to six months to work with a budget before changing to something else. Only change your budget plan if your funds change a great deal, either more or less, and we pray not less.

TIPS FOR SPENDING:

               1.      Identify those things that are mandates not options: utilities, insurances, groceries, etc.

               2.      Make sure what you are buying is a need more than a want

               3.      Always do comparison shopping whenever possible

               4.       Look for and use discounts and coupons whenever possible

               5.       Always try to avoid buying on impulse (it is a bargain, it cost more somewhere else, my friend paid more for theirs, etc.)

               6.       Always try to buy with cash rather than a card, see and feel your money. It will make you closer to keeping it.

               7.      Always have a savings, if only loose change, keep all loose change for a rainy day

               8.      Maintain a list of spending that is not on your budget 

Hebrews 13:5 

⁵ Let your conversation be without covetousness; and be content with such things as ye have: for he hath said, I will never leave thee, nor forsake thee.

Exodus 20:17 

¹⁷ Thou shalt not covet thy neighbor's house, thou shalt not covet thy neighbor's wife, nor his manservant, nor his maidservant, nor his ox, nor his ass, nor any thing that is thy neighbor's.

 Practice contentment without covetousness.

• Advertisers make you want the life you see in commercials.

Galatians 6:8

Worship God above all else, and don’t worship idols, people often make their material possessions their gods without even realizing it—especially money.

And when it comes to saving, giving and debt, there is no difference. The world says one thing, but the Bible points to a better way—a way that glorifies God and actually helps us live fuller, more joyful lives.

For he that soweth to his flesh shall of the flesh corruption; but he that soweth to the Spirit shall of the Spirit reap life everlasting.

• It’s tough trying to resist the world’s ways when it comes to money. We have all experienced temptation in that area and have buckled at some point. That is why keeping God’s desire for our finances front of mind is so important.

Remember these points next time you feel like the world is trying to take your money out of God’s hands and put it into its own.

• The world says: YOLO! You only live once! Indulge first and save later.
• God says: Pay yourself by saving. Then enjoy the fruits of your labor.

According to a 2015 Federal Reserve report, nearly half of Americans do not have the cash on hand to cover a $400 emergency. And more than half of households couldn’t live without their income for just one month without borrowing. 

 Americans definitely prioritize the present more so than the future.

But Proverbs 21:20 (NIV) explains the value in saving for a rainy day: “In the house of the wise are stores of choice food and oil, but a foolish man devours all he has.” And even beyond your own household, saving can create financial stability for future generations: “A good man leaves an inheritance to his children’s children” (Proverbs 13:22 NKJV).

It is okay to have some fun with your money—as long as you budget for it, and as long as you pay yourself first by tucking some of your money into savings.

*The world says: Spend all of your money on you. There is no way you will have anything left over!
*God says: Give 10% off the top and work toward being able to give even beyond that. No one gives accidentally. You must be intentional about it. That means that when you budget your money each month, set aside 10% of your income to give first, even before you save it. That is the instruction in Proverbs 3:9–10 (NKJV): “Honor the Lord with your possessions, and with the first fruits of all your increase; so your barns will be filled with plenty, and your vats will overflow with new wine.” And in Malachi 3:10, God tells us that those first fruits should be a tenth of what we produce.