Though simple in concept, budgeting can be a daunting task in the eyes of many people. Keeping track of where your money goes may seem like a chore that is time-consuming and difficult, but it doesn’t have to be this way. Budgeting and keeping track of expenses can be as simple or complicated as you want it to be.

A budget is the foundation of your finances.

Why Keep Track?

Keeping track of your expenses will show you where your money really goes.

Do you know how easy it is to spend an excessive amount of money on unnecessary items? If you get a mocha or latte at Starbucks twice a week for the year, you’ve spent well over $500 on coffee alone.

Removing the Unnecessary Sink Holes

Almost all of us have opportunities for improvement in our budgets. Once you have created your budget and realize where you are spending the largest amount of money each month, you will be able to think about cutting down unnecessary costs that are dragging you down.

Perhaps limiting yourself to one coffee shop trip a month (and making your own the rest of the week) is something that helps you have more cash for other important things. Or maybe you realize you are pumping money into cable TV each month, when you are barely home to enjoy it. Or maybe you find that the money you spend going out for food more often than not would be less costly if you chose to cook at home a few more times a week.

If you aren’t willing to take a good look at where your money goes, then you will continue to spend the same. Saving up, paying debts and living within your means are facets of a solid steward. Don’t squander what you’ve been given–be responsible with it.

You Can Still Have Fun

This might sound like if you keep track of where your money goes then you will feel guilty for having any fun, but that shouldn’t be the case. Having a special column in your expenses for entertainment is a good idea, but this should be the lowest cost of the month or a treat for when you settle your first debt on your Christian debt settlement plan. Entertainment would include TV, desert and coffee, shopping for fun and doing other entertaining things like going to a basketball game or concert.

Getting Started

Whether you use a piece of paper, an excell spreadsheet, or software you find online, the important thing is to take action.

There are programs out there that offer to take your card spending and filter it into a readable format of expenses. You can also do it yourself, but the most important part about this is that you start immediately and you keep up with it!

Each week you should enter your costs that you have paid out and any money you have brought in. Keeping your receipts for the day until you can enter them into the computer will help you not forget what you’ve spent money on.

Your budget is going to be the foundation of your finances. Take the time to create an honest budget and you will be well on your way to achieving your financial goals.

The Christian life is one of sacrifice in its very nature. Our entire religion is based on the sacrifice that Christ himself made. Throughout the New Testament we are urged to sacrifice; sacrifice our selfish desires for Godly desires, sacrifice our evil pleasures for holy pleasures, and yes sometimes even to sacrifice our money.

There are folks who would say, “God doesn’t need my money, so I’ll just keep it for myself.” True, God Himself does not need money, but money is and always has been a magnifying glass that can reveal an individual’s heart pretty quick. Money in the hands of an evil man can empower that man to do greater evil. While money in the hands of a good man can empower that man to do greater good. Money does not cause people to be good or bad it is just one way that their goodness or badness is revealed to the rest of the world.

This is why Jesus told the rich young ruler in Mark 10 to go sell everything he owned and give it to the poor. Not only would this help the poor, but also reveal what was really in the young man’s heart. The young man chose to keep his money rather than help the poor and follow Christ. The money was just a peep hole into his soul.

When you feel the internal push to make a financial sacrifice the first emotion that wells up in you is an indicator of what state your heart is in. Here are a few areas in which we are most commonly asked to sacrifice financially.

Tithing

The tithe may be an Old Testament idea but the logic never grows old. Even if God does not need money, a church must have money to operate. When you are a member or attendant of a church, you are benefiting from that church each time you visit. You get spiritual help from the pastor who needs to be financially compensated for his time and efforts. You are being warmed or cooled by the heating and air system which must be paid for monthly. You are reading your bible because of the electricity which must also be paid for. You use the facilities which also cost money. The church is there to be a blessing to the congregation, and the congregation has an obligation to contribute financially so that the church can continue to be a blessing to the community.

Personal Giving

There is no systematic rules for personal giving like there might be for tithing. Personal giving is just that, personal. The key to personal giving is to be tuned in spiritually to the needs of those around you. We all know what it feels like to be nudged into action internally. When you feel that nudge, your own personal desires should be put on hold for the good of the one in need.

If you feel as if you never have money available to help others, sit down and do a really honest evaluation of your spending. If you find you have more going out than coming in, you may want to speak with an advisor about Christian debt relief programs that can help you improve your financial situation so you can give more.

As you look through your budget, try to find one thing you or your family do that is unnecessary. It could be monthly movie rentals, or office coffee runs. Saving up that money, even for just one month can be contributed to a worthy cause. Start a change can for a missionary, cash it out monthly then send the gift with a letter of encouragement. Even these small acts of sacrifice are pillars of Christian money management and make a difference and feed your spirit.

Personal Finances

There is a good amount of sacrifice that must go into reinventing your finances. A household drowning in debt and stress does not glorify God. A budget so strapped with debt payments that tithing and personal giving goes out the window does not glorify God. In order to turn that situation around an individual must buckle down and sacrifice some of the loose spending habits, feelings of entitlement and sometimes even a few possessions in order to accomplish this goal.

When we take the time to conduct a true and honest evaluation of our spending we will often find that we have a greater capacity for giving than we may have thought. If you find room in your budget for giving but have a difficult time actually giving the money away, spend some time in prayer to find out why. It may be insecurity, it may be greed, or it may be something else. No matter the reason, it is an opportunity for spiritual growth.

Social status is a mysterious element of our society. All of us feel its presence, but few of us understand it. The Encyclopedia Britannica describes social status this way, “The relative rank that an individual holds, with attendant rights, duties, and lifestyle, in a social hierarchy based upon honor or prestige.” This “prestige” of course is relevant to your own personal social circle. What might not be looked upon as social status in some circles may be very important to social status in other circles.

In our “middle class” society, social status is most often defined by our education, occupation and possessions to varying degrees. Our homes would probably be the top possession that can influence our social status, but coming in at a close second is definitely our vehicles.

From the moment the vehicle was invented it has been a symbol of just what kind of person you are in the eyes of the people around you. In the early years only the wealthy, modern families had a “horseless carriage.” The same judgments, however, are still being passed today on individuals who perhaps do not own a car, and more often judgments are passed on you based on the year, make, model and condition of your car. This pressure springs us into the “vehicle trap” where we place much too high a value on our vehicles, an emotional value, that will often come at a major financial expense.

This is a problem for the Christian who is attempting to get out of debt or reinvent their financial life to reflect more control and security. Why is this a problem? It is a problem because the root of this entire social status issue has always been pride and our vehicles are a daily reminder of our social or financial status. Most people are familiar with the twinge of embarrassment at some point in their life of having to drive or be driven around in a car that they felt was “beneath” them. That feeling was your pride revolting against something.

“Pride goes before destruction.” Proverbs 16:18

Nowhere is this passage better reflected than in our finances. Pridefulness can cause certain financial destruction when you allow your emotions to influence your spending decisions.

It has become a norm in our society to have monthly payments on our vehicle. For most purchases in our lives, we know that we should save the money and then buy the item. Mortgages and vehicles have become an exception because of their high cots, but in the case of the vehicle it is largely because we are living beyond our means.

Car payments are, in most cases, one of the most unnecessary of all debt payments that individuals strap themselves to. You may say, “I must have a car.” That may be true, but must you have a car that was so expensive that it required you to take on payments? In many cases the answer is no. You chose a car that was above your financial means because it was cool, it was fast, it was pretty, it would make people say, “Wow, nice car.” People want to hear this, and they want to hear it because of their pride.

Affording a nice car is entirely different from strapping on debt for a nice car. If you are already making debt payments on other items or if you have set as a goal for yourself to be debt free, then there is no excuse for taking on an exorbitant car payment when there are cheaper vehicle options available.

Four Surprising Benefits to Avoiding Car Payments

Savings on Interest

Okay, this one isn’t so surprising in and of itself, but the numbers are! According to Edmonds.com, 55% of loans taken out in 2012 were for terms longer than 60 months. That added anywhere from $2,115 to a whopping $5,548 in interest charges above the purchase prices of the vehicle.

Lower Insurance Premiums

When you take out a loan for a vehicle vehicle, the lender holds a lien against the car. You must then meet lien holder insurance requirements that are often above what your coverage would normally entail. Purchasing a vehicle outright eliminates that additional expense.

Opportunity for Personal Growth

If you battle with the desire to keep up with society’s expectations of what kind of car you should be driving, purchasing a car that might not be quite as shiny as the new ones on the lot is an opportunity for personal growth. A shift in your priorities can help you become a more humble individual.

Freedom

This one is especially true as compared to the alternative option of leasing a vehicle. If you own your car outright, there is no concern for how many miles you will drive, or how long you must keep the vehicle. If you find your situation has changed a year after buying the car, you can sell it or trade it in for a new car. With a lease you might be stuck with the car longer than you would want. With a loan, you might be upside down and be unable to trade it in without creating financial pressure.

Ask yourself these questions if you are in need of a vehicle right now:

How much cash do I have on hand to purchase a vehicle?

If you can pay cash for a cheaper, older car do so! This is the wise financial choice.

If I must make a payment which vehicle will have the lowest payment?

Think of this car as a temporary car. This is your “getting out of debt” car. Once you are financially free you might be able to upgrade a bit with cash!

If I knew that no one at all would ever get to see my car, which car would I choose?

This will help you evaluate whether you are functioning off of prideful emotions or practical need.

Buying a vehicle is a major purchase. Take the time to review your budget and carefully evaluate your financial situation before making the decision to take on a monthly payment when it may not be necessary.

If you live in your average American community, it is easy to miss seeing the struggles of others in areas where money and resources are scarce. In poor countries, and even right here at home, a few dollars can have a tremendous impact on the lives of the needy.

Looking at money from this perspective allows you to better manage your finances and apply Christian principles to your budgeting.

How much can a few dollars do?

To help put things in perspective, we found a few Christian charities that provide examples of how a small donation can make a big difference in the lives of recipients. A different outlook can show you the real value of money.

$10- The cost of two specialty coffees

Give a homeless child a full day of meals.- Covenant House

$13- A trip through the drive through

Help support a child in poverty for an entire week.- Compassion

$16- The price of an average t-shirt

Provide a hygiene kit to a needy individual.- World Vision

$20- Going to the theater for a date

 Provide two mosquito bed nets and help prevent disease in poverty stricken areas.- Compassion

$35– “That cool new Chomecast thing”

Provide bedding for homeless children and teens.- Covenant House



$54- The monthly gym membership you aren’t using

Feed a family in America for three days. World Vision

$67- The cost of a new video game

Buy a share of a bakery cart in Bolivia, which helps those in need start a business and build a livelihood.- ChildFund International

$137- The expense of a single day at a theme park

 Help impoverished mothers get small business loans. ChildFund International

Using Our Blessings

When we take the time to plan our finances, we can reduce impulse purchases that not only save money, but also give to charity. I know that much of the money I spend would be put to much better use elsewhere.

Somewhere along the line we got our priorities mixed up. We make unnecessary purchases without though or consequence. For someone struggling to acquire food and shelter, small amounts of money make a big difference.

Whether the funds go to hungry children or homeless teens, every dollar counts. Keeping the real value of money in perspective shows just how better off we would be putting that money elsewhere.

 

It is a fact: more Americans are in debt today than ever before. According to Forbes, consumers saw their credit card debt jump to $856.5 billion as of May 2013, and credit cards are only one source of debt that people carry with them.

While financial troubles can certainly be the result of a difficult economy, let’s face it, we all play a role in our own finances. Short of a sudden job loss or a financial emergency, most financial struggles are a result of our behavior. Let’s take a look at what might be keeping you in debt.

You Are Relying on Credit Cards

“Suppose one of you wants to build a tower. Will he not first sit down and estimate the cost to see if he has enough money to complete it?” – Luke 14:28

As tempting as it can be to put purchases on a credit card, resist doing so. Use them only in case of a true emergency. An example of this might be if your vehicle breaks down unexpectedly and you need to have it towed. Ideally, you could rely on your emergency fund to cover those costs, but if you aren’t there yet this is when you will want to reserve using those cards.

If you often reach for your credit card on impulse, leave your cards at home when you shop. If you see something you want and you do not have the cash budgeted for it, do not buy it. Go home and think it over for a few days. If you still want it then, make a plan for the purchase and save up the money for it.

You Are Over-Complicating Your Life

“A pretentious, showy life is an empty life; a plain and simple life is a full life” -Proverbs 13:7

We live in a world where more is better, and that spills over into the way that we live our life. So many of us try to add so much onto our list of things to do that we cannot enjoy the simple gifts that God has provided to us.

Rather than trying to have your child add take on another extracurricular activity (which often cost money), set aside a day or two each week to go to the park as a family. Take some time and use some creativity to find some ways that you can simplify your life, you will often find that over-complication comes at a cost.

You Are Not Living Within Your Means

“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

These days, we are all bombarded with images that scream Buy! Buy! Buy! As a result, it is incredibly common to fall into the materialism trap, though. Living in a bigger house or driving a new car will not make you happy in the long term. It is likely to only make you want more stuff.

If you are tempted to ‘keep up with the Jones’ by buying the latest and greatest things other people have, a shift in priorities may be in order. Coveting another’s possessions only leads to grief and debt.

This is certainly not to say that we cannot have nice things, we need only be sure that our priorities are in order. When considering a purchase I will often ask myself if it is going to bring added fulfillment to my life, or allow me to spend enjoyable time with my family. Not all purchases will fall into those categories, but do your best to make sure it isn’t going to pull in the opposite direction.

If nothing changes, nothing changes. Follow the basics of Christian finance and apply God’s word, and you too can enjoy a debt free life.

With today being the first day of the New Year, there is chatter of resolutions abound. On the radio, television, every media outlet available we are hearing about how many people are resolving to lose weight or pay off debt. It is well known though that the majority of resolutions are not kept.

While we absolutely suggest that you resolve to reduce your debts this coming year, we suggest even more that you stick to that resolution.  Here’s how!

Learn to Say No

We are all inundated with colorful catalogs and endless television commercials promising happiness if we buy the latest device. Don’t let the temptation of new and shiny baubles distract you from your goal of reducing your spending. Everlasting happiness doesn’t come from material goods. “Do not store up for yourselves treasures on earth, where moths and vermin destroy, and where thieves break in and steal. But store up for yourselves treasures in heaven, where moths and vermin do not destroy, and where thieves do not break in and steal.” (Matthew 6:19-20)

Enjoy Activities Instead of Objects

Do you think your children will better remember a day spent with the family in the park or the beach or hours spent on a video game? Pack some sandwiches and bring your loved ones to a free public park. Bring some stale bread to feed the ducks. Pack a Frisbee, a football or a kickball. Take pictures if you like, but don’t forget to put down the camera and live in the moment.

Embrace Board Games

Rather than letting them take up space and collect dust in your closet, open up those board games! Dedicate a table in your home to a jigsaw puzzle that is always out. Games and puzzles are inexpensive and they provide a natural opportunity for relaxed conversation. If you want to know what’s on your teenager’s mind, sit with them over a game. You’ll be surprised how much they’ll open up when they aren’t the center of your focus.

Take Advantage of Free Services

Most communities have libraries that not only have free books to offer, but free DVD and audiobook rentals. You can cut back on your movie rental expense by utilizing the library as your own personal media center.

Take Care of your Belongings

Honor the workmanship that went into the manufacturing of your vehicle, furniture, clothes and other belongings. Change your oil regularly in your car to prevent costly breakdowns. Treat stains immediately rather than letting them become permanent, leading to buying new clothing unnecessarily.

Challenge yourself

Where are your weaknesses where spending is concerned? Is it the makeup counter? Challenge yourself to find natural beauty solutions, many are even right in your kitchen. Can’t resist the home improvement store? Find the most cost effective way to tackle that project by reusing items around the house. All of these will not only save a fair amount of money, but also be better for our environment as well.

Get Professional Help

If your burden seems to heavy to bear on your own, seeking Christian debt management help is a good beginning to changing your spending style. Fill out the short form on the right hand side to request a free consultation with one of our Christian Debt Advisors so that you can follow through on your resolution to become debt free in 2014.

We hope you enjoyed phase one of dealing with a Christmas hangover, now it’s time to move on to past two!

If you went a bit beyond what your budget had allowed for (or bypassed the budget altogether) here is a 3 step way to get back on track. Don’t let a holiday slip-up keep you down, you can still reach your Christian debt management goals.

Step One- Assess the Damage

First things first, gain a full understanding of your financial situation. Hop online to review your online statements, or review your statements once they come in the mail. If you took to your credit cards for your gift giving, review all of them and tally up the balances. If you reached into your savings account or even your emergency fund, you’ll want to know how far you went beyond what you can really afford.

Step Two- Make a Commitment

Now that you know just how much needs to be paid off or replenished, you can make a commitment to make it happen. A good commitment is achievable, clearly defined and has a time limit. You may need to pay/save $400 in two months. No matter how far you went off track, don’t make a goal that is unrealistic. Create it, say it and mean it.

Try to keep your goal at two months or less to take advantage of the bonus below.

Step Three- Re-budget

You’ve got your commitment in place, now you need to find a way to make it happen. The end of the year is always a good time to revisit your budget and your financial goals. If you do not already have a written one in place, now is definitely the time to create an honest budget.

If you were really honest in creating your budget, you will probably find that you have a few things that you can give up in order to reach your goal. Specialty coffees, impulse purchases and eating out are a few of the top budget breakers.

Here’s Our Free Christmas Tip For You

Giving feels great. Sacrificing to recoup afterward, not so much. However, you can absolutely turn this Christmas debt hangover into a tremendous opportunity for financial growth.

It is scattered throughout the internet that it takes 21 days to turn something into a habit. The new spending habits you develop in step three don’t need to stop after the Christmas debt is gone. Let’s say you had to pay/save $400 in two months as mentioned above. By this time 2014, you’ll have paid off the 2013 Christmas debt and saved $2,000 on top!

When you’re trying to get out of debt any extra little bit of cash helps the cause.

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For most people, investing is simply done for the sake of acquiring more wealth. For Christian’s, this is setting the bar very low. We should view investing as an opportunity to support businesses and endeavors that promote the betterment of our world.

“Everyone to whom much was given, of him much will be required, and from him to whom they entrusted much, they will demand the more”. Luke 12:48.

Those of us that have money to invest are entrusted by God to do what is right by investing well and choosing businesses that truly improve our world, promote social awareness or provide for the common good.

A Higher Purpose

True wealth goes much beyond than the money in your bank account. It is the relationships we nurture, the ideas we create and share, and the values that we support. Seeking money as a way to have security is one thing, but rising high above those around you financially is unnecessary.

Christian investors that want to be socially responsible should look beyond the potential payout of an investment opportunity. We should seek companies that provide a service or product that adds to our world and does not take away more than it gives back to the world. We should support companies that do good.

Investing With Integrity

Many companies now give out grants to various charitable organizations, promote contests for financial prizes for start up ideas that build stronger communities and overall work hard to provide a supportive work environment for their employees. FaithWorks Financial, for example, donates 10% of fees earned through our debt settlement program to the church of our clients choice. Even companies that do not publicize themselves as Christian organizations do a tremendous amount of good in our world.

On the opposite end of the spectrum, some companies will do whatever they can to make a profit. They will cut costs, cut staff pay, understaff, even at the cost of worker safety.

It’s important to know what type of company you are dealing with before you decide to purchase shares or invest in that company in any way. When you invest in a company, you are supporting the company.

A Bigger Return

Tithing is an issue that may at first seem at odds with investing. After all, tithing is giving a percentage of your income to the church where you choose to worship. Traditionally the tithing percentage is 10% but this is difficult for many individuals and families today.

Tithing is investing. It is investing in the prosperity of the church and keeping the future of your chosen parish alive. Tithing is an investment in God, in worship and in the community that exists in your church.

Investing in small business through micro lending is another way that Christians choose to invest their money responsibly. In micro lending, a person requests funds to start up a business. Generally this person is working hard to get out of a life of poverty. The requests are modest. Each investor can invest any amount towards the total investment the person has requested.

Through a micro loan, an impoverished small business person is given the opportunity to get a business started that they would not have been able to do otherwise.

Once the micro loan is paid back by the business person, the money goes back to the investor with the opportunity to invest the money into the next request. Although this does not create financial gain for the investor, it promotes the Christian value of taking care of each other.

If you are blessed with a financial situation that allows you to consider investments, you have the privilege of helping to form a better world. Investing in a company based on more than dollars and cents will add greater fulfillment and meaning to your investments.

If you take a look at the financial state of society at large, you may be tempted to believe that living without any debt is impossible in modern times. However, Christian finance need not mimic that of the secular world. As Christians, we are called to a higher standard in the way we manage our finances, especially when it comes to spending. If we adhere to God’s word in our spending habits, it is very possible to live a debt free life.

A Needed Conviction

Living without any debt requires a great deal of conviction and commitment to Christian finance principles as laid out in the Bible. Romans 13:8 says “Let no debt remain outstanding, except the continuing debt to love one another…” This principle goes contrary to modern financial standards where living on credit is the expected norm. In fact, not having a credit record can actually work against you in today’s financial world as we discuss in another article. As a consumer, you may find it difficult to make major purchases on credit such as a vehicle, house or commercial property without having pre-established credit.

The Real Problem

Owning credit cards and establishing a credit record is not the problem per se. Just because you have a credit card does not mean that you are in debt. It is a lack of control over credit card spending that will lead to debt and financial difficulties. Credit cards increase your buying power, making it easier to acquire the things you need. Unfortunately, credit cards also facilitate buying the things you want, which often goes above and beyond what you need.

The real problem is not the credit card, it is the inappropriate use of them. Carrying balances, paying one account with another, impulse purchases and the like are what truly turn a simple credit card purchase into an overwhelming burden. This is why it is important to identify your wants from your needs.

The pull of materialism is very strong in society today, making it difficult to control one’s desires. Marketers spend billions of dollars to teach society that they need to continue buying the newest and coolest item on the market. If you’re not constantly on guard against this pull, it can be very easy to let your credit card spending get out of control.

Wise spending entails being selective in the items you buy. As a Christian, our financial spending should go deeper than mere material gain, remembering that “we brought nothing into the world, and we can take nothing out of it.” (I Timothy 6:7) By keeping your financial priorities in line with Christian principals, you will be able to enjoy the financial blessings you have while living a debt-free life.

Credit Card Free vs Debt Free

Although it certainly is possible, you may not be able to live a completely credit card free life in modern times. However, you can live a debt free life. If you exercise greater control over your spending habits it is possible to become and stay debt free. Using your credit cards wisely and paying your bills on time will keep you from going into debt. You should also budget your spending to help you live within your financial income.

Many people who have fallen into this vicious cycle are finding relief through the Christian debt relief programs offered by FaithWorks Financial for assistance in overcoming bad spending habits and becoming debt free. If you are in need of bettering your financial situation, help is available.