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: 8 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.
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When 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.
I know from experience that it can be pretty difficult to watch your friends show off their expensive haircuts, designer clothes or salon-perfect manicures when you’re living on a Great Clips budget with a Wal-Mart wardrobe.
Take heart. When you’re out of debt and financially free, you’ll appreciate the discipline you displayed while everyone else was swiping that credit card. But in the meantime, it sure would be nice to experience a little pampering without breaking the budget, right?
I’ve used this money-saving method for years in two different cities, and I have yet to get a bad haircut. Some people are nervous about having a cosmetology student cut or color their hair. If that’s the case, ask for a student who is about to graduate. That way, they’ll be up on the latest styles and techniques, and they will have already completed many hours of hands-on practice. Also, instructors are usually walking around to advise and monitor the budding stylists.
Aveda Institute, the closest beauty school to my home, currently offers $12 haircuts for women and men and manicures starting at $10. There are plenty of other services as well, and most are far cheaper than your average salon. At Aveda, I can get a quality haircut, manicure, and pedicure for what I would pay for just one haircut somewhere else.
If you’re still not convinced about the cosmetology school idea, at least find a great deal for a haircut or other salon service by shopping online. Sites like Groupon and Living Social are continually offering deals for 50% off at salons, spas and all kinds of other places. Just read the fine print and do your research to make sure you’re dealing with a high quality, reputable business.
Start thinking about your nearby friends and relatives and the various skills they have. Do you know someone who’s a hair stylist? How about a masseuse or a makeup artist? Maybe you have a friend who isn’t a professional, but just has a knack for painting nails or styling hair.
Now think about what you’re good at.
Perhaps it’s photography, cooking, gardening or babysitting. Whatever it may be, consider trading it for a free beauty service. We don’t really live in a bartering culture anymore, but that’s beginning to change as people find creative ways to save money and help each other out. I personally know a busy hairstylist and working mom who’d be happy to trade a salon service for a few hours of babysitting. Look for a win-win situation that will save both parties some cash.
You’ve probably seen the commercials about how you can buy the same designer clothes found in department stores for a fraction of the cost at TJ Maxx or Marshall’s.
Well, it’s true.
I can’t remember the last time I bought clothing at an expensive mall or a department store, because you can generally find me at the nearest TJ Maxx getting five new items for the price of one. This isn’t just a great place to shop for clothes; the same concept applies to beauty products like lotion, shampoo and hair spray. I’ve even found great prices on luggage.
I recently bought two brand name dresses and a blouse for $3 apiece at a community yard sale. All three items were like new. I’ve had similar success at Goodwill. If you turn your nose up at the idea of hand-me-downs or gently used clothes, you’re missing out on some great bargains.
Of course, not all yard sales and thrift shops are created equal.
Make sure you find a good one with quality items that aren’t visibly worn out. A group yard sale in an upscale neighborhood is a great place to start. It’s amazing what people will get rid of to make a little room in their closets. Yard sales are especially helpful when it comes to buying inexpensive clothes for babies and children. Kids grow so quickly that you can find beautiful, almost-new clothes for just a couple of dollars.
Before you dismiss this idea like I once did, know that you don’t have to be an artistic genius with two hours to spare in order to make your own awesome bath and body products. I found a great recipe for an exfoliating lime and coconut body scrub that uses three cheap ingredients and can be made in less than five minutes.
Homemade beauty items are not only great for pampering yourself—they make even better gifts. Just hang onto an empty jelly jar, add some cheap ribbon and you’ve got a winner. Making your own stuff can be as simple or involved as you want it to be. Personally, I like to stick with basic, foolproof ideas, but if you have a little time, see how creative you can get. I have a friend who has made her own deodorant. It seemed to work (she didn’t smell) but that’s a little too involved for me.
See what else you can come up with to look and feel good for less. Just because you’re on a budget doesn’t mean you can’t pamper yourself once in a while.
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.
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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