We all have the best intentions when it comes to our money, but life seems to have other agendas. Without a financial plan, we’re at the mercy of our impulses and whatever circumstances life throws at us.
Many people assume that budgets are for people who struggle with their finances or who are simply bad with money. Some people think that budgets are just meant to restrict you from buying what you really want. Others imagine that following a budget will just create more stress in their lives than they already feel about financial matters. But the truth is that a budget is simply a personalized plan for how you want to use your money, and every Christian should have a budget. Here are six reasons why:
1. A budget helps you understand where your money is going
You work hard to make a living. You wouldn’t give money to an organization that had no idea how they had spent previous donations and no clear plans for what they would do with your new donation. What if you held your personal finances to the same level of accountability as you expect from others?
Using a budget is about knowing where your dollars are going. If you operate your finances without a budget, at best you may have a vague idea of where you are spending your money. A budget is a plan for your money, allocating your monthly income toward giving, saving, and spending goals. Budgets are not meant to be static, one-and-done contracts. Instead, by planning and tracking through a budget, you’ll have the necessary information to make adjustments as life circumstances change.
Identify your values, and plan—budget—to spend, save, and, give your money accordingly.
2. A budget helps you give to God right off the top
You want to give a portion of your finances to God as an act of worship, but your best intentions alone don’t get it done. When you sit down and create a budget, you can prioritize your tithe and see how you’ll live off the rest of your income.
Budgeting also helps you plan for charitable or benevolent giving. While the end of the calendar year is often the time when people give charitable gifts, organizations are much more effective when they can plan based on monthly giving. When you allocate how much you want to give to an organization, consider splitting the amount across twelve months and becoming a monthly giver.
Finally, you may also desire to be able to say yes when one-time requests for charitable giving arise. You can create a special giving fund for when you encounter critical needs. This will allow you to give cheerfully instead of simply hoping you have enough to give.
3. A budget helps you create breathing room in your finances
Imagine walking out the door to head to work and finding out your car won’t start. You might put your forehead on the steering wheel and think, “Is this going to be a $50 fix, or is it going to cost me $500?” Car problems are a perfect example of the kinds of expenses we can expect but don’t plan for; when they happen, they can throw everything into chaos.
When you put away a small amount each month specifically to prepare for unplanned financial needs, it can save you a lot of panic. When that emergency expense pops up, instead feeling ambushed, you’ll know you planned for it in your budget.
4. A budget can help you plan for your future
It’s troubling to consider that one in three Americans have nothing saved for retirement. If you’ve never been taught to budget for it when you are young, it’s much more challenging to be prepared.
It’s difficult to think about the future when you’re living paycheck to paycheck, but what if you could eke out even a modest monthly investment in your retirement? The best day to start saving for retirement is today, because compound interest over time can add up and pay off later when you’re ready to retire.
But that investment strategy will flow out of your current financial situation—and there’s no better way to stay on top of your situation than to have a budget.
5. A budget helps you set an example of stewardship
Using a budget helps you set a good example of stewardship for your family. When you demonstrate wise financial management, you help your children see how to manage their own finances so their finances don’t end up managing them.
Taking the stewardship of your resources seriously will leave a lasting impression on members of your family. They’ll learn the value of making educated and disciplined plans for where their money will go. Not only can budgeting help you leave a financial legacy for your children, it can also leave a legacy of financial responsibility, which might be even more important.
You can achieve your financial goals.
As you consider areas of growth for the year ahead, resolve to build and keep a budget. A budget is not meant to be a restriction on your life but rather a plan for how you’ll give, save, and spend your money. Implementing this tool can make all the difference in helping you achieve your financial goals.
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