Well, before I learned what God said about money I certainly didn’t think I needed advice of others. I was like our 2 year old son, “No daddy, I do it, I do it!”
I’m so thankful the Bible tells us that seeking counsel is smart. We all have limited experience and knowledge, and we need the insight of others to make good decisions. So I encourage you, pray for the Lord to surround you with godly people who can give good advice.
We also learned that Proverbs 21:20 encourages us to save. It says,
“The wise man saves for the future, but the foolish man spends whatever he gets.”
Unfortunately, many people aren’t savers.
We recommend saving at least ten percent of your income. Now, this may not be possible initially / But begin the habit of saving—even if it’s only a little bit each month.
Now the Lord also tells us it’s important to balance saving and investing with giving. Jesus said, “Where your treasure is, there will your heart be also.” If we only pile up investments, they’ll pull on our hearts like gravity, and our affection will be drawn toward them and away from Christ. So, you gotta give as well as save.
And, when it comes to investing, the key principle is to spend less than you earn, and invest the surplus. In other words be a steady plodder. Proverbs 21:5 says,
“Steady plodding brings prosperity, hasty speculation brings poverty.”
One of the biggest benefits of growing your investments by steady plodding is that it allows time for your character and relationship with Christ to grow, as well. And as you continue to mature, you’ll be in a better position to handle resources wisely.
Now let’s see what’s in store for the next lesson.
By the next lesson, you’ll have been tracking your income and spending for 30 days, and you’ll be ready to begin building your Spending Plan.
You can either choose to build your spending plan through an online tool, or use the Build a Spending Plan Worksheet.
If you choose to use an online format, we recommend clicking on the Mint.com link. The tutorial video will show you everything you need to get started. Your 30 days of tracking have the same categories as Mint, so the transition will be seamless.
If you are using the Build a Spending Plan Worksheet, simply complete the worksheet by listing your income and your expenses from the 30 day Diary.
After listing your Income and Expenses, you will be able to determine your surplus or deficit.
If your income is greater than your expenses, you have a surplus and only need to control your spending to maximize the surplus. Continuing to use the spending plan can help you accomplish this.
However, if your expenses are greater than income, you have a deficit. Don’t be discouraged, as the Spending plan is always a work in progress. Just carefully review the plan and make necessary adjustments to bring the Spending Plan into balance. Also, ask your Facilitator should you have any questions regarding your spending plan.
And finally, remember WHY you’re using a Spending Plan: it’s the best tool to help you stay on top of your finances so you can make real progress in getting out of debt and saving and giving more.