If you're like me, that first cut of your budget might not look too good or has some shortfalls in some places. So let's talk about how to fix that.
This is where your financial priorities come into play, helping you make decisions on which allocations of your income to cover your expenses you can cut back on or defer to a future pay period. I really can't do this process justice on this blog, so I encourage you to check out the examples in my book, Kingdom Prosperity. But I will cover a few points here.
Some things to keep in mind as you attempt to balance your budget:
1) Your #1 financial priority should be to finance the Kingdom work here on Earth, so don't cut back on your tithes, and only on your offerings as a last resort.
2) Identify any outlays of money that can be moved to a future pay period or reduced, without missing any payments or compromising your financial priorities.
3) What outlays of money are discresionary that you really don't have to spend, or spend now? This is where you have to separate your wants from your needs, and takes a lot of discipline. This might include money you have in your budget for shopping/clothes, dinning out/entertainment, vacations, etc.
4) What outlays of money can be spread differently across the pay periods you are budgeting for, and even across future pay periods, without missing any payments.
5) Where you have installment payments, check to see where you have budgeted more than the minimum payments and reduce outlays to the minimum payments.
6) In some cases it may be worthwhile to contact some or all of your creditors to work out payment arrangements that fit into your budget. You'll be surprised how many will be willing to work with you.
Again, I go into much more detail on balancing your budget in my book, but the bottom line is that this takes time, discipline, sacrifice and keeping your financial priorities in front of you at all times.
It also will usually take several revisions before your budget is balanced. It took you some time to get into your current financial condition, and it will take you some time to turn it around (hopfully not as long as it did to get into it).
But it does work! Just have faith and trust God to guide you. And once you've gone through the process of balancing your budget a few times, it will get easier.
So now, go balance your budget.
Monday, August 31, 2015
Friday, August 28, 2015
#68 - Kingdom Prosperity #34
OK, you now understand the principles of effective financial stewardship and have established your financial priorities, so it's time to develop your budget - your roadmap to using or expending the financial blessings God is bringing into your life.
This is process and not an event, so it will take time and effort on your part. But if you don't have a plan for using those blessings based on God's Will, you will squander those blessings and not see the additional blessings God has for you (financial and otherwise) manifest in your life. That's why it is so important to establish your financial priorities before developing your budget. Developing your budget is also something husbands and wives should work and be in agreement on together, as one flesh.
So where do you start? Make a list of every expenditure you have to make including bills, household expenses, personal expenses and so on. For each item list any current balance, how frequently any payments need to be made (weekly, monthly, quarterly, annually), and the minimum payment that has to be made. Be sure to include items related to your financial priorities like tithes & offerings, a seed account, savings, money to bless others with, etc. At this point don't worry about how much you have coming in.
Next make a list of all of your income including your paycheck, retirement check if applicable, rental income, bonuses, etc. Just like your expenses, list the frequency of each item of income and both the gross and net amounts.
Now you are ready to match your expenses up with your income by pay period or when you have income coming in, along with when outlays are due. For each pay period you can then see the surplus or shortfall of income needed to cover bills, and cumulatively over the time frame for which you are budgeting (suggest a two month period to start). This is your first view of your budget, and you will most likely have shortfalls for certain pay periods and possibly over the entire budgeting period. That's why this is an iterative process that will take several sets of revisions before you are done. We'll cover what to do to address the shortfalls or surpluses after your first cut of your budget in the next Post.
In my book, Kingdom Prosperity, there are examples of what I have covered above and will cover in a simple Excel spreadsheet format.
So, take a crack at the first cut of your budget if you haven't done so already.
This is process and not an event, so it will take time and effort on your part. But if you don't have a plan for using those blessings based on God's Will, you will squander those blessings and not see the additional blessings God has for you (financial and otherwise) manifest in your life. That's why it is so important to establish your financial priorities before developing your budget. Developing your budget is also something husbands and wives should work and be in agreement on together, as one flesh.
So where do you start? Make a list of every expenditure you have to make including bills, household expenses, personal expenses and so on. For each item list any current balance, how frequently any payments need to be made (weekly, monthly, quarterly, annually), and the minimum payment that has to be made. Be sure to include items related to your financial priorities like tithes & offerings, a seed account, savings, money to bless others with, etc. At this point don't worry about how much you have coming in.
Next make a list of all of your income including your paycheck, retirement check if applicable, rental income, bonuses, etc. Just like your expenses, list the frequency of each item of income and both the gross and net amounts.
Now you are ready to match your expenses up with your income by pay period or when you have income coming in, along with when outlays are due. For each pay period you can then see the surplus or shortfall of income needed to cover bills, and cumulatively over the time frame for which you are budgeting (suggest a two month period to start). This is your first view of your budget, and you will most likely have shortfalls for certain pay periods and possibly over the entire budgeting period. That's why this is an iterative process that will take several sets of revisions before you are done. We'll cover what to do to address the shortfalls or surpluses after your first cut of your budget in the next Post.
In my book, Kingdom Prosperity, there are examples of what I have covered above and will cover in a simple Excel spreadsheet format.
So, take a crack at the first cut of your budget if you haven't done so already.
Wednesday, August 26, 2015
#67 - Kingdom Prosperity #33
Besides the people God leads you to for help in fine tuning your financial priorities, there are also a number of other resources available to assist you. Some are on-line, some in short articles you read, and others in the form of a brochure or pamphlet. I can't cover them all here, but I'll mention a couple that I have used and like.
One is an on-line tool called the Financial Final Four, which works just like filling out your brackets during March Madness, But unstead of picking college basketball teams you pick from a menu of financial priorities. You pick the match-ups and the winners who move on to each subsequent round, until you end up with your final four financial priorities. Then you decide the most important in the last two rounds.
There is also the Crown Money Map, which helps you determine your life purpose and goals, and then takes you through six life destination steps with each one focused on various financial priorities to help you discover what yours are as well as some components to go into your budget. Each step along the way is supported by scripture.
There are other resources available as well to help you determine your financial priorities, along with the wise counsel God directs you to. The point is, as you are moving along the journey of being an effective Steward over the financial blessings God brings into your life, establish your financial priorities before deciding how you will use those blessings which is what budgeting is all about and which I'll touch upon in the next Post.
One is an on-line tool called the Financial Final Four, which works just like filling out your brackets during March Madness, But unstead of picking college basketball teams you pick from a menu of financial priorities. You pick the match-ups and the winners who move on to each subsequent round, until you end up with your final four financial priorities. Then you decide the most important in the last two rounds.
There is also the Crown Money Map, which helps you determine your life purpose and goals, and then takes you through six life destination steps with each one focused on various financial priorities to help you discover what yours are as well as some components to go into your budget. Each step along the way is supported by scripture.
There are other resources available as well to help you determine your financial priorities, along with the wise counsel God directs you to. The point is, as you are moving along the journey of being an effective Steward over the financial blessings God brings into your life, establish your financial priorities before deciding how you will use those blessings which is what budgeting is all about and which I'll touch upon in the next Post.
Friday, August 21, 2015
#66 - Kingdom Prosperity #32
Now when you start to seek the counsel of those God has led you to for help in fine-tuning your list of financial priorities, you need to listen to what they say. Be open to receive and meditate on what they tell you, rather than ignoring something you think doesn't apply to you, that you've heard before, or doesn't make sense to you. If God directed you to that person there must be something for you in what they are saying. So continue to trust God, not yourself, as to what of that you are told you should apply in your life.
You also need to be willing to share some of yourself with those you seek help from, including some things about your financial situation you might not be proud of. Otherwise, they might not be able to share with you what God wants them to if they don't understand your financial condition, your financial past, bad financial habits you have developed, or the condition of your heart.
That's why it's important to follow God's leading in who to talk to. You may think you should talk with so and so because he or she knows a lot about money or appears to be financially successful, or a close family member who has done well financially. And while they could be at times, they may not always be who God wants you to seek wise counsel from. Also, you need to be able to trust who you talk with to keep what you share in confidence. The people you know best or even family members may not always do that. So again, follow God's leading, and not your own.
You also need to be willing to share some of yourself with those you seek help from, including some things about your financial situation you might not be proud of. Otherwise, they might not be able to share with you what God wants them to if they don't understand your financial condition, your financial past, bad financial habits you have developed, or the condition of your heart.
That's why it's important to follow God's leading in who to talk to. You may think you should talk with so and so because he or she knows a lot about money or appears to be financially successful, or a close family member who has done well financially. And while they could be at times, they may not always be who God wants you to seek wise counsel from. Also, you need to be able to trust who you talk with to keep what you share in confidence. The people you know best or even family members may not always do that. So again, follow God's leading, and not your own.
Friday, August 14, 2015
#65 - Kingdom Prosperity #31
Once you've sought God's guidance and direction regarding your financial priorities through prayer, you need to exercise your faith believing God has answered your prayer.
So start by making a list of everything that comes into your mind that might be a financial priority for you. At this point it doesn't matter how long the list is or if everything on it is from God. But do consider the principles covered in previous Posts related to giving, saving, debt, etc. as you make out your list.
Now as you move forward you will be able to shorten the list, and God's discernment will guide you in weeding out what is not from Him. As with prayer, husbands and wives should work on this list together.
You also need to keep exercising your faith daily by thanking God for giving you wisdom, guidance and direction regarding your financial priorities.
After you've got your initial list of priorities, you need to start fine-tuning it with the help of others and resources available to help you do that. But not just anybody or any resource. Go back to God in prayer, specifically asking Him who you should seek counsel from and what resources to avail yourself of. Some scriptures to help you with this are Proverbs 37:30-31, Proverbs 6:20-22, Proverbs 15:22, Psalms 1:1, Proverbs 8:11 and Proverbs 13:15, all of which speak to seeking wise counsel which we'll talk more about in the next Post.
So start by making a list of everything that comes into your mind that might be a financial priority for you. At this point it doesn't matter how long the list is or if everything on it is from God. But do consider the principles covered in previous Posts related to giving, saving, debt, etc. as you make out your list.
Now as you move forward you will be able to shorten the list, and God's discernment will guide you in weeding out what is not from Him. As with prayer, husbands and wives should work on this list together.
You also need to keep exercising your faith daily by thanking God for giving you wisdom, guidance and direction regarding your financial priorities.
After you've got your initial list of priorities, you need to start fine-tuning it with the help of others and resources available to help you do that. But not just anybody or any resource. Go back to God in prayer, specifically asking Him who you should seek counsel from and what resources to avail yourself of. Some scriptures to help you with this are Proverbs 37:30-31, Proverbs 6:20-22, Proverbs 15:22, Psalms 1:1, Proverbs 8:11 and Proverbs 13:15, all of which speak to seeking wise counsel which we'll talk more about in the next Post.
Sunday, August 9, 2015
#64 - Kingdom Prosperity #30
The best place to start in establishing your financial priorities is with prayer. James 1:5 tells us if we lack wisdom to ask God. Psalms 119:24 tells us that God delights in His Counselors. Hebrews 4:12 tells us among other things that the Word of God knows the thoughts and intents of the heart.
Bottom line is that God's Word is intended to be the guide and counselor for our lives. So pray to God, asking Him for guidance, direction and discernment regarding what your financial priorities should be (beyond financing the Kingdom of God here on earth). Now God most likely won't spell out your financial priorities for you, but rather direct and guide you in what to do, who to seek counsel from, and what resources to avail yourself of.
Lastly, husbands and wives should seek God's guidance and direction on their financial priorities through prayer together, as one, the way God sees you. Because husbands and wives need to be in agreement in order to be prosperous in their marriage, financially and otherwise.
Bottom line is that God's Word is intended to be the guide and counselor for our lives. So pray to God, asking Him for guidance, direction and discernment regarding what your financial priorities should be (beyond financing the Kingdom of God here on earth). Now God most likely won't spell out your financial priorities for you, but rather direct and guide you in what to do, who to seek counsel from, and what resources to avail yourself of.
Lastly, husbands and wives should seek God's guidance and direction on their financial priorities through prayer together, as one, the way God sees you. Because husbands and wives need to be in agreement in order to be prosperous in their marriage, financially and otherwise.
Saturday, August 8, 2015
#63 - Kingdom Prosperity #29
Financial priorities are important, because as with anything you want to achieve if you don't have a vision or picture of where you want to end up you will never get there.
In setting your financial priorities, you also have to look beyond your current financial situation, because as my Pastor, Bishop Williams, has taught us at The King's Cathedral, your past doesn't have to dictate your future (unless you let it).
Now your financial priorities do not spell out how you will achieve them, but rather the financial goals that are important to you and that you want reflected in your financial plan (your budget). Speaking of budgets, many people set out to develop a budget without first having established their financial priorities. As a result, they never fully realize the financial prosperity they could realize. So establish your financial priorities first.
But understand thst establishing your financial priorities will take time and effort, and cannot be done strictly on your own. It takes prayer and guidance from God, help from other people, and use of a variety of resources available to assist you. In addition, married couples should develop their financial priorities together, and not on his own or her own.
In the next Post we'll begin to cover the best ways to establish your financial priorities, starting with prayer.
In setting your financial priorities, you also have to look beyond your current financial situation, because as my Pastor, Bishop Williams, has taught us at The King's Cathedral, your past doesn't have to dictate your future (unless you let it).
Now your financial priorities do not spell out how you will achieve them, but rather the financial goals that are important to you and that you want reflected in your financial plan (your budget). Speaking of budgets, many people set out to develop a budget without first having established their financial priorities. As a result, they never fully realize the financial prosperity they could realize. So establish your financial priorities first.
But understand thst establishing your financial priorities will take time and effort, and cannot be done strictly on your own. It takes prayer and guidance from God, help from other people, and use of a variety of resources available to assist you. In addition, married couples should develop their financial priorities together, and not on his own or her own.
In the next Post we'll begin to cover the best ways to establish your financial priorities, starting with prayer.
Thursday, August 6, 2015
#62 - Kingdom Prosperity #27
What are your financial priorities?
You understand the foundational principles of Kingdom Prosperity, God's Financial Plan of Tithes & Offerings, and the principles of effective Stewardship, financial and otherwise. So what next?
The short answer is financial priorities. As God starts to prosper you financially, you need to have a plan for using that prosperity as God wants you to. And that plan starts with establishing your financial priorities, which the next several Posts will discuss how to do.
While everyone's financial priorities will differ, the number one financial priority for everyone is the same - advancing the work of the Kingdom here in the earth realm. If this sounds like Tithes & Offerings, love gifts, blessing others financially, etc. which we've already talked about, it is! But that doesn't happen by itself. It takes a plan which starts with making this your number one financial priority.
Go back and read Deuteronomy 8:18 and Matthew 6:33, and you'll see (be reminded) that God's number one priority in blessing you financially is to establish His covenent, His Kingdom in the earth realm. And if that's God's top priority it should ours as well in every area of our lives, including our finances, seeking His Kingdom and righteousness first!
You understand the foundational principles of Kingdom Prosperity, God's Financial Plan of Tithes & Offerings, and the principles of effective Stewardship, financial and otherwise. So what next?
The short answer is financial priorities. As God starts to prosper you financially, you need to have a plan for using that prosperity as God wants you to. And that plan starts with establishing your financial priorities, which the next several Posts will discuss how to do.
While everyone's financial priorities will differ, the number one financial priority for everyone is the same - advancing the work of the Kingdom here in the earth realm. If this sounds like Tithes & Offerings, love gifts, blessing others financially, etc. which we've already talked about, it is! But that doesn't happen by itself. It takes a plan which starts with making this your number one financial priority.
Go back and read Deuteronomy 8:18 and Matthew 6:33, and you'll see (be reminded) that God's number one priority in blessing you financially is to establish His covenent, His Kingdom in the earth realm. And if that's God's top priority it should ours as well in every area of our lives, including our finances, seeking His Kingdom and righteousness first!
Sunday, August 2, 2015
#61 - Kingdom Prosperity #27
There is one last parable in Luke 12:42-47 I want to look at that reinforces the insights on effective Stewardship we saw in the first two parables we looked at.
If you are submitted to the authorities you are under and are an effective Steward over what they entrust you with to take care of, you will be blessed with more. But if you are not submitted and not an effective Steward you will not be blessed, and you subject yourself to the wrath of God.
Finally, the kind of Steward you are over what God entrusts you with reveals your heart to God. Because it's your heart that God is really after and concerned about. Do you have a heart for God and truly trust Him as your source, or is your heart for the things of the world and your trust in yourself, other people and everything but God?
If you are submitted to the authorities you are under and are an effective Steward over what they entrust you with to take care of, you will be blessed with more. But if you are not submitted and not an effective Steward you will not be blessed, and you subject yourself to the wrath of God.
Finally, the kind of Steward you are over what God entrusts you with reveals your heart to God. Because it's your heart that God is really after and concerned about. Do you have a heart for God and truly trust Him as your source, or is your heart for the things of the world and your trust in yourself, other people and everything but God?
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