Tools and strategies to help believers navigate financial hardship with wisdom. Explore budgeting systems, payment prioritization, hardship planning, and practical steps for protecting your family during difficult seasons.
Estimated reading time: 7 minutes
The term “budget” gets tossed around a lot.
A budget can be simple or complex. It should reflect our income and our expenses, and it should be honest.
Sometimes we’re so focused on our valuables that our budget neglects to reflect our values.
Instead of merely creating a financial budget, let’s instead consider keeping God first and creating a Christian budget.
Continue readingWhen you’re trying to stick to a tight budget, your biggest concerns are the essentials—paying the mortgage, getting food on the table and keeping the lights on. Continue reading
There are lots of reasons to get (or stay) in shape. One that isn’t always at the top of the list is the fact that fitness is good for your wallet.
In general, healthy people have fewer health care costs. They aren’t in and out of the doctor’s office as often, and they aren’t shelling out tons of money on prescription drugs for preventable health problems. Continue reading
The days are getting longer, the weather’s getting warmer and it’ll soon be time for spring cleaning. While you’re tidying up your closets, car or garage, don’t forget to spruce up your budget, too.
Developing a routine is great, but there are certain aspects of every budget that shouldn’t stay stagnant. Here are three moving targets to check on this spring.
Some retirement plans have an option that will automatically bump up your contributions little by little each year. It’s a fantastic way to make retirement planning a priority without having to think about it. But if you don’t have an automated option, this is a great time to take a look at the state of your retirement funds.
Dave Ramsey recommends investing 15 percent of your income into a Roth IRA or pre-tax retirement account. While he also suggests holding off on retirement funding until you’re debt-free with a sizable emergency savings, some people choose to prioritize their retirement plans, especially if they are retiring soon.
If you can, bump up your retirement contributions by 1-2 percent this spring. When spread out over a year, that’s enough to make an impact on your 401K without hitting your budget too hard.
If you immediately log onto the computer and compare car insurance rates every time you see a gecko on TV, this step is not for you. If, however, you’re like me and blindly fork over that insurance payment every other month without thinking twice, keep reading.
Insurance coverage, like your retirement plan, is a moving target. Rates are constantly changing, so it’s important to periodically check on your plan to make sure you’re getting as many discounts as possible. It’s also wise to talk to an insurance agent or scan the web every now and then to compare prices from different companies. You really could save hundreds of dollars.
When it comes to your budget, it’s easy to set it and forget it. If it’s been a while since you made any adjustments to your budget categories, sit down and take a look at them. If you’re married, call a quick meeting with your spouse. This doesn’t have to be painful; it’s meant to help you get the most out of every paycheck.
Perhaps you’ve been budgeting lots of money for gas, but you recently took a job that’s closer to home, or you’ve been telecommuting more. Take some of that gas money and shift it into another budget category, such as savings or groceries. Life is always changing; your budget should change with it.
Hopefully these ideas will get you thinking about other ways to free up some money as you do some “spring cleaning” for your finances. It may not be the most exciting thing you do this year, but, hey, it beats cleaning out the garage, right?
We spend a lot of time talking about ways to make and stick to an honest budget. Here are five ways to wreck that budget—and possibly your entire financial life—in record time.
A budget is worthless if you don’t follow it. To ensure financial misery, hide the budget from everyone in your household, including yourself. Make sure no one is clear on exactly how much money should be spent on various categories like groceries, entertainment and birthday gifts for friends or relatives. If you happen to remember the correct budget for a certain area (such as eating out), treat it as a mere guideline and come up with great excuses for spending more than you budgeted.
A person without self-control is like a house with its doors and windows knocked out (Proverbs 25:28, The Message).
Your college friends want to hold a reunion weekend in Las Vegas. Your church small group is planning to go out for Sunday brunch at an expensive restaurant. Your daughter is begging you for a new iPad. Say “yes” to everything. Be a people-pleaser at all costs. Dip into your savings to take a vacation, and chip away at your debt payment to buy that expensive wedding gift for the out-of-state wedding that’s going to cost you a bundle. Put vacations, clothes, tech toys and other people’s opinions of you first. Worry about the budget later.
Keep your lives free from the love of money and be content with what you have, because God has said, “Never will I leave you; never will I forsake you” (Hebrews 13:5, NIV).
You don’t get paid until Friday, but it was a long, rough Monday and you deserve a treat. Go ahead and buy it. Even though the money isn’t in your checking account yet and the budget is tight, you’ll figure it out later. A few dollars on the credit card won’t hurt anyone. (For maximum budget-wrecking, repeat this process Tuesday-Friday and fail to immediately pay off the balance).
The prudent see danger and take refuge, but the simple keep going and pay the penalty (Proverbs 27:12, NIV).
Buy that sleek-but-gas-guzzling SUV that so many of your neighbors are driving. Spend every penny you earn and make only the minimum payments on your debt. Pick the biggest house you can afford—the one with the monthly payment that’s equivalent to 40 percent of your income. You’ll face near-instantaneous foreclosure if you or your spouse loses a job, but that’ll never happen to you. That only happens to other people.
Is there anyone here who, planning to build a new house, doesn’t first sit down and figure the cost so you’ll know if you can complete it? If you only get the foundation laid and then run out of money, you’re going to look pretty foolish. Everyone passing by will poke fun at you: ‘He started something he couldn’t finish.’ (Luke 14:28-30, The Message).
Buy into the lie that you are alone in your financial struggles and no one would ever understand what you’re going through. Let pride dictate your decisions. Even though bill collectors are blowing up your phone and you’re trying to decide between the mortgage and the electric bill, you can handle this. Believe that the same thinking that got you into debt will somehow get you out of it.
Plans fail for lack of counsel, but with many advisers they succeed (Proverbs 15:22, NIV).
If any of the above scenarios sounds all too familiar, now is the time to take action and change your ways. In particular, if the last paragraph hits home, consider requesting a free consultation from FaithWorks Financial to learn about our Christian debt relief programs. There is always hope, and there really are compassionate people who can help point you in the right direction.
Christians, who are starting a financial revolution in their life, face a unique set of circumstances that perhaps non-Christians do not face.
We have certain Biblical standards to live by, and sometimes these Biblical standards or obligations feel like they contradict our financial plan. Tithing is one such principal that a lot of people would look at and say, “Well, hey! If you want to get out debt you need to be putting that tithe money on your debt payments too for now.” But as Christians we know that it is far better to work that into the top slot of our budget rather than try to skimp.
Most of us, even those who are in a Christian debt consolidation program understand the importance of tithing and don’t question it too much. However, there are other forms of giving outside of tithes.There are love offerings, fund raisers, missions and sometimes just personal giving that God leads us to.
How do we handle these types of giving when we feel like we have already stretched ourselves to the limit? Why would God lead us to give more if the budget is already maxed?
The story in Mark chapter 12 tells of an old widow who wanted to give. She had so little that any offering would be a sacrifice, so she decided to just give it all.
Sometimes God leads us to give more than we imagine possible or even wise, just so we can prove to ourselves that we can let go.
You may think that revolutionizing your finances is all about hanging on to your money. It is about letting go; letting go of bad habits, letting go of stuff and letting go of the hold that money, or the appearance of money, has over you. When you stretch in your giving you are letting go.
When God says give and you whip out your calculator, sometimes the numbers will not add up.
Just as Elijah asked another widow in the Old Testament to make him a little cake first, even though she had only enough for her and her son. God already knew what kind of miracle he had in store for this woman, and it sure beat her plan of eating her last meal and dying.
You cannot know what God has planned. His ways are above our ways. Giving is often an exercise in faith.
It’s never a wise thing to start drawing lines in front of God; however, we do have to draw lines in front of ourselves.
In the area of sacrificial giving, great care must be taken to never stray into the realm of foolishness. There are ways to detect foolishness, however. Usually if there is any hint in our hearts of gaining something for ourselves through the act of giving, then it was not God speaking to your heart. If people are pressuring you rather than God speaking to you, beware also.
Trust in God to lead your heart and your giving, and you can trust that your giving is appropriate.
Nothing saps gas mileage quite like winter weather, which means a huge number of Americans are paying more to fill up this season. Plus, the Associated Press recently reported that gas prices are expected to rise in the coming weeks.
That means now is a great time to change a few bad habits in order to save money at the pump. You’ve probably heard that it helps to maintain your car by getting regular oil changes, keeping your tires filled and aligned, and changing the air filter regularly.
Have you ever unloaded the groceries after a trip to the store, only to realize you forgot the toilet paper? Suddenly, a 10-mile round trip turns into 20 miles (and a big waste of time). Put a stop to unnecessary trips by always making a shopping list, whether it’s on paper or on your smartphone. And don’t just write down the groceries you need; write down the different stops you have to make—the bank, the pharmacy, the laundromat, etc.—and figure out the most efficient way to combine your errands.
We live in a society where it’s normal for four people who are headed to the same place to drive four different cars to get there. We don’t like the idea of adjusting our plans by 5-10 minutes in order to use just one vehicle. Maybe we need to fear the high cost of independence more than we fear the inconvenience of carpooling.
Try checking around at work and church to see who lives nearby. Teaming up could save multiple families money and even build some new friendships.
If gas prices jumped by 24 cents/gallon tomorrow, you wouldn’t be thrilled, right? Well, keep in mind that once you hit 50 mph, every time you speed up an extra 5 mph, you’re paying 24 additional cents per gallon. In other words, if you’re doing 60 mph in a 50-mph zone and you have a 15-gallon tank, you’re paying an extra $7/tank.
The race car principle also applies to braking and accelerating. According to the U.S. Dept. of Energy, riding the brakes and accelerating like a drag racer can lower your gas mileage by 33 percent. That can add up quickly at the pump.
With websites and apps like GasBuddy, there’s no excuse for not knowing where to find the cheapest gas, and prices can vary quite a bit from one side of town to the other. For example, in Boynton Beach, Fl., prices currently vary by as much as 38 cents/gallon depending on where you go.
Of course, you don’t want to inadvertently pay more money than you save by driving to an out-of-the-way gas station. That’s where Bankrate’s handy calculator comes in. If you enter a little information about your car and your area gas stations, it’ll tell you whether it’s worth it to drive a little farther to fill up.
According to the U.S. Dept. of Energy, for every 100 pounds of weight you carry, you reduce your gas mileage by up to 2 percent. That set of golf clubs, cord of firewood or big box of items you’ve been meaning to take to Goodwill do not need to make a permanent home in your trunk. Unload the extra weight and save money.
Does the following scenario sound familiar? You load the kids into the car, start the engine and proceed to buckle up, check your mirrors, check your hair, dig around for your sunglasses, dig around for a CD, check your email on your phone, tell the kids to stop harassing each other and—at least five minutes later—finally pull out of the driveway. If this is a typical day for you, don’t worry—you’re not alone. But you are wasting gas money by allowing the car to idle while you get your act together.
Unless the weather is unbearably hot or cold, trying running through your checklist before you turn on the engine. Even if your car idles for just 10 minutes a day, it could cost you more than $100 a year in wasted gas.
This year, the federal government will reimburse 14 cents for every mile you drive for charity. Do you teach Sunday school each week? Volunteer at a soup kitchen? Drive to the Salvation Army to drop off used clothes? Track those miles so you can deduct them on next year’s tax return.
Here’s more information on the most recent mileage reimbursement rates for charity, business, moving and medical-related travel.
This is a big one. While some of the above tips could save you hundreds of dollars, a different choice of vehicle could easily save you thousands. The website www.fueleconomy.gov allows you to compare gas mileage between new and used vehicles made in 1984 or later.
If you’re ready for a more drastic change, consider a hybrid or electric vehicle. In most cases you’ll pay more up front, but gas savings will have you pocketing more money in the long run.
As Christians, we fully understand the “reason for the season.” It is our time of the year to consider God’s great sacrifice through his son Jesus Christ, our opportunity to reflect upon the sheer magnitude of God’s grace toward us.
Unfortunately, consumerism has taken over our society. It is estimated that the average person sees thousands of advertisements a day. Whether it’s on a billboard, the side of a bus, in a store or on television, we are surrounded by the message that in order to feel good we should spend. This is especially true now that the Christmas season is well underway. We tell ourselves that we must buy things for the people we care about, even if it means putting it on a credit card.
One great thing about attempting to manage finances according to Christian principals is that we understand the importance of the holiday. We know that spending money is not what Christmas is all about. It is important for anyone trying to get out from under debt to celebrate Christmas on a budget.
Fortunately, plenty of people are managing to have a joyous Christmas on a budget and have come up with easy ideas for making it possible to enjoy Christmas without breaking the bank.
Stick to your Christmas budget and come January you’ll be very grateful that your New Year’s resolution does not involve paying off 2013’s Christmas debt!
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