Ugh, Budgeting
Apr 08 '00
Budgeting has become a four letter words to many families. It seems that most have a difficult time making ends meet. And even the thought of making, let alone keeping to, a budget seems to be a task difficult for most. Hopefully this plan I have found to be successful will work for others as well.
First of all you must understand that as a pastor I look at everything from a biblical perspective. So some of my ways may seem foreign to you but trust me, they do work.
The plan I use is called the 10-10-80 debt reduction plan. The idea is simple: pay God, pay me, pay them.
1) 10% of my income goes to the tithe at my local church. I did this long before I became a pastor. Many times I have found that due to obedience in the scriptural practice my needs were met when I didn't know where the money was going to come from. In Malachi, the scripture tells us: 'test me (God) in this (the tithe) and see if I will not open the windows of heaven and pour out a blessing that you cannot contain". Promotions I didn't deserve, unexpected pay increases, and financial gifts from undisclosed friends have all been evidence of God's blessing in honoring the tithe.
2) With 10% of my income I pay myself. I know that sounds funny, but that is exactly what I do. This 10% goes into short and long term savings or investments. I found some time ago that if I did not make this second priority to the tithe I would save nothing. Savings is an important part of the family budget that gets viewed as a 'luxury we just can't afford'. It is something that must be done though. Even if you can afford 10% of your income just $10 a week into an educational IRA when your child is a baby or toddler will pay for his college when he is 18. Some savings must be in your budget.
3) With the remaining 80% I pay my debtors. Including a heading called debt reduction I divide the remainder of my income between the companies I owe money to. This does include my childrens allowance, utilities, rent, two car payments, insurance, food, credit accounts, and debt seed.
After taking the 80% and making payments to all the 'standard' bills, I use what's left over to participate in the two listed you may not be familiar with, debt reduction and debt seed. Debt reduction is obvious, I simply make an additional payment to any debt heading (car, credit account, etc.) I choose. "Debt seed" is another scriptural process. The Bible says you reap what you sow. My big project for 2000 is to eliminate debt. Since that is what I want to reap it is important to me to plant seed that will make that happen. I do that by giving financial gifts to others designated for debt reduction only. (Whether they use it for that or not is unimportant, the important thing is that I was obedient to the principle.)
For the little extras we want we have found several web sights that have incentives. We get 100's of dollars every month in movie tickets, restaurant coupons, clothing, sports equipment, and more...ABSOLUTELY FREE!
The biggest help is managing a budget is the debt factor. If your in debt, get out of it. If your not in debt, avoid it at all costs. The interest you pay for that fancy dinner you ate 6 months ago adds up over the long haul. Debt is a necessary evil for a home or new car. Practicing 'delayed gratification' will go a long way to keeping your budget on trak.
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Epinions.com ID:
scott_howell
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Member: Scott Howell
Location: Baltimore, MD (by way of West Virginia
Reviews written: 81
Trusted by: 17 members
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