• Biblical Finance Class - Living Part 3

    I hope you all have been enjoying the Biblical Finance Class - Living series. Please see Part 1 and Part 2 if you missed them to become up to speed on the lesson. One of the most important ways to manage your personal finances is to create a zero-based budget. A zero-based budget is explained in the video below but if you have more questions do not hesitate to contact us below. This has been determined by looking at Proverbs 27:23-27 NKJV which says:

    23 Be diligent to know the state of your flocks,
    And attend to your herds;
    24 For riches are not forever,
    Nor does a crown endure to all generations.
    25 When the hay is removed, and the tender grass shows itself,
    And the herbs of the mountains are gathered in,
    26 The lambs will provide your clothing,
    And the goats the price of a field;
    27 You shall have enough goats’ milk for your food,
    For the food of your household,
    And the nourishment of your maidservants.

    Obviously, there is a great deal of wisdom in these scriptures and if you are a believer or non-believer there is something to takeaway. Here are some benefits below that budgeting can help you achieve. If you are interested in more information on budgeting please check out our blog "Ballin' on a Budget... Not Possible... Right?" The benefits of budgeting, not mentioned in Biblical Finance Class - Living Part 3, are:

    1) Knowing What Your Money Is Doing
    It can be very difficult to make decisions with money when you are unclear about where your money is going every month. Remember the Rule #2 of personal finances... YOU ARE THE MANAGER! A quote I recently saw in a book one of my professors wrote stated, "What gets measured, gets managed." In our situation this quote is 100% true. So I'd like to challenge you... how can you manage something if you don't measure it? It's important to know each month what your expected income and expenses are so you can properly manage your money. You do this by doing a budget the month before for the month to come. You did a lot of work to obtain the money, so do the small amount of consistent work to manage it!
    2) Providing Direction on Giving, Saving/Investing, & Enjoying Money
    Without a budget how do you know how much to give, save/invest, and enjoy? It's hard to determine that without actually seeing the numbers. As discussed in the Biblical Finance Class - Giving Part 2 giving is a heart condition so, in my opinion, it should be at the top of your budget and if you are a believer it's about trusting God. Once you have decided what to give determine next what you will save/invest and finally determine what you will enjoy. Obviously, you have bills to pay but I place most of those in the enjoyment category. As crazy as it sounds, if you pay a water bill it may seem like a bill (in negative terms) but I can honestly tell you I enjoy having running water in my home. With a budget you are putting your financial information together which allows you to make better decisions and gives yourself a road map for your money.

    3) Holding Yourself Accountable to Your Plan
    Once you have a budget created you are now accountable to it because it should be used to direct your spending. Don't get me wrong, a budget can change but that change has to be done by you. If you are married you and your spouse both have to agree which is not always easy especially in the beginning (I've been there before and I understand, it can be tough but keep at it. It's worth it!). The accountability of the budget is important on both a large and small scale. 

    For example if you are trying to save for a trip that cost $3,000.00 and want to have the money in 3 months, that would mean you need to save $1,000.00 each month for three months. Since budgets are done monthly you can see before the end of the first month how you are tracking for your goal. If you notice you are not close to your goal after the 1st paycheck of the 1st month you can make adjustments as needed. This is what makes you accountable and illustrates how important hitting your goal is to you. You may decide the trip is not that important or that you need to stop spending as much to meet your $1,000.00 for the month. The choice is yours!

    I hope you begin to see how budgets are one of the best tools to manage your personal finances. Please check out the video below and leave a comment. God Bless!


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