Money Matters - Basic Causes Of Financial Difficulties

Most people have problems with finances, but they just don’t know why.

According to the latest surveys, over one-half of all families in America are presently experiencing financial difficulties.  And the real truth is many do not seem to know why they are having these difficulties.  If these type problems are so common, then it would be important to understand the reasons they exist.

The following is a listing of some reasons of financial difficulties.  This listing can be a means of educating oneself in these most critical areas.

1. Failure to follow scriptural principles.  The Bible is full of guidelines regarding financial principles.  In fact, one half of all parables and one out of six verses in the New Testament deal with stewardship.  Get the Bible and start an in-depth study of the guidelines and principles in the Word of God.
2. Failure to identify priorities.  A person and family must identify their priorities if they are ever going to be successful in their financial life.
3. Failure to discipline.  This horrible word causes people more problems than anything else in the world.  Discipline must be exercised in every phase of a person’s life and in the world of finances it is critical.
4. Failure to establish goals.  A person who has no goal is a person without direction.  A person without direction is going nowhere.  A person must establish the financial goal for themselves if they ever want to arrive at a successful financial position in life.
5. Failure to control spending.  A written control is necessary to control impulsive spending.  Limits must be established and kept.
6. Failure to establish a budget.  A budget is not a nervous breakdown on paper.  It is a clear guideline of where your money comes from and where it goes.  Do not negate the importance of a written budget…it is vital to anyone’s financial success.

Money Matters - Why A Budget?

A budget is the tool provided in accounting terms that gives us the proper indication of how we stand in our finances.  Too often people refuse to prepare a budget because it seems cumbersome and boring.  A budget can be implemented in most homes but give only 1-2 hours per month.  That is not much time to have a clear indication as to where you stand financially.  Not only will a budget give you a picture of where you stand, it will help you organize your bill paying so you don’t get behind and have to pay late fees, and it will show you the debt you have so you can pay it off systematically. 

A budget is a guide that tells you whether you are going in the right direction so that you can expect to meet your financial goals.  You may have goals and dreams but if you do not set us guidelines for reaching them and you do not measure your progress periodically, you may end up going so far in the wrong direction you can never get out of financial difficulty.

• A budget lets you control your money instead of your money controlling you.
• A budget lets you control your spending habits.
• A budget allows you to save in a systematic manner.
• A budget allows you to meet your goals.
• A budget will tell you if you are living within your means.

Money Matters - Stewardship Is Critical

God provides for us so that we might in turn protect what he has given us.  Our God entrusts us to live within our financial means and ability.  To live outside this ability, jeopardized the provisions of the family. 

God owns everything but he gives us the use of it all.  As we can be further trusted, he entrusts us with more.  We become the managers of his blessings and provisions.  If we cann't be trusted with what we have, how do we expect God to trust us with more?  The management and care of God’s provisions is critical to future blessings.

According to Matthew 25:15-27, God expects dividends and a return on his investment.  If we do not properly care for it and squander it, then we can expect to be cut off from the continued blessings of God.  Luke gave us a clear indication of this in Luke 16:10 as he stated that the person who is faithful in little things is an indicator of faithfulness in larger things.

While earthly things are temporal, we still have to live here on earth.  God gives us everything we need to live, survive, and enjoy the fullness of life.  We must care for it with all diligence.

Money Matters - Christian Expectations

Too often people are afraid to budget because it seems to be more trouble than it is worth.  However, a budget is not a nervous breakdown on paper.  It is an organized and systematic manner of controlling income and expenses so a person can recognize danger areas in their financial life before they happen.

Too many Christians find themselves in financial hardship.  Why?  We belong to the body of Christ and we have God on our side.  If heaven is his throne, the earth his footstool; if He owns the cattle on a thousand hills, then why are his children struggling and finding it difficult to “get by” in this affluent society?

The secret to getting ahead is not from “have luck in the stock market” or “making that once in a life time investment” or even in “receiving an inheritance from a wealthy family member”.  It is defined as time!

All the investments and inheritances one can attain will not be the solution if you don’t take the time to plan and protect.  People must take the time to discipline themselves to have a written plan that will provide the guidelines of scheduling money in and out of the home, thus providing a means of protection from financial disaster.

A Christian should expect their finances to be in better shape than that of the average person in the world.  Christians have the backing of the God of glory and His Word!  One of the first things a Christian should do is take the time to investigate the scriptures concerning their financial situation.  Notice some scriptures that give us guidelines for planning, preparation, and protection of finances.

Money Matters - The Budget's Attitude

One of the top reasons that so many people, including Christians, fail at budgeting is simply attitude.  It a person thinks of it as a penny-pinching sacrifice instead of a means for achieving one’s financial goals, then it is unlikely they will stay with it.  To increase the chances of a successful budget, it is important to work on the attitude. 

If ”budget” sounds too harsh…consider it as a “financial plan” for the home.  The plan can help you get ahead; control spending, and save for future spending.  Budgeting really does matter in the process to help one reach their goals and without some formal plan of working with the finances, goals and dreams can never be reached.

Money is a tool…and a tool that everyone needs in today’s society.  This tool can enable a person to reach their goals in life, however, until a person knows where their money goes and how it is spent, a conscious decision about how to use this tool effectively is impossible.

So it is important to get the right attitude and not give up.  Quitting too soon or tiring of the process is simply a means of failure in reaching the potential goals and dreams one has.

The following scriptures give spiritual guidance for the finances of the home.  Take the time to read these and study God’s plan for financial survival.

• Prosperity:  Genesis 39:3; Psalms 1:3; Joshua 1:6-8; Luke 6:38; John 10:10

• Provision:  Genesis 41; Exodus 15; I Kings 17; John 21:2-6; Matthew 4:11

• Giving:  Deuteronomy 14:23; Malachi 3:10; Matthew 23:23; Hebrews 7:1,2

• Budgeting:  Proverbs 22:3; 24:3,4; 27:12; Luke 12:16-21; Luke 14:28-30

Reasons For Financial Difficulties

     According to the latest statistics, over one-half of all families in America are experiencing financial difficulties. This includes single parent homes.  Most people have financial problems, but don’t know why! 

     In order to be aware of the financial difficulties one has and know what causes them, a person must educate himself to the reasons for the difficulties.  The following are a list of reasons that most people find themselves in financial difficulty.

1. FAILURE TO FOLLOW SCRIPTURAL PRINCIPLES.  The Bible is full of guidelines regarding financial principles.  In fact, one-half of all parables and one out of six verses in the New Testament deal with stewardship.  Get your Bible out and start studying.  Ask your pastor for more information.  See a Christian Financial Counselor for assistance.  You will find great guidelines and principles in the Word of God.
2. FAILURE TO IDENTIFY YOUR PRIORITIES.  Just exactly what do you want?  More things or better financial stability?  Prioritize your desires and needs and stick to it.
3. NO DISCIPLINE!  That one horrible word causes us more problems than anything else in the world.  We need to exercise discipline in every phase of our life, especially when it comes to discipline!  Discipline yourself to limit unnecessary purchases and wasting money.  Discipline yourself to set down once per month to analyze your finances.  Discipline will be the greatest thing you can establish in your life. Work diligently with disciplining yourself.
4. FAILURE TO ESTABLISH GOALS.  A person who has no goal is a person without direction.  A person without direction is going…nowhere!  To solve your financial difficulties, you have to establish a clear goal.  Where do you want to be one year from now; five years from now, etc.?  Write your goal down and work toward it.
5. NO CONTROLS.  This compares to discipline, however, it means to have written controls over your spending.  Write down what your limits are.  Review them frequently. 
6. FAILURE TO ESTABLISH A BUDGET.  A budget is not a nervous breakdown on paper.  It is a clear cut guideline of where your money comes from and how it is to be spent.  It only takes about 1 hour per month to maintain a budget so that you can control the process of knowing where your money is and how it is spent.  Don’t negate the importance of a written budget…it will be the greatest factor in helping you get your finances under control.
7. UNABLE TO CONTROL IMPLUSIVE SPENDING.  If you don’t follow the direction of your budget and discipline yourself, you will be unable to stop spending when you see that item that you just must have.  Don’t spend any unnecessary money until you discuss it with someone. You must control your spending if you ever hope to get ahead financially.

Money Matters - A Blessing Or A Curse?

Why is it that so many Christians who are working are not doing well financially?  Unfortunately too many Christians are not equipped with the scriptures and methods required to better manage their money.  God has redeemed man from the curse of the law to give him liberty in all things.  This includes money. 

A person who calls himself a Christian must adhere to the scriptures in order to better prepare himself.  Christians should not worry about money.  They should not fret about their finances.  But they should rely on the blessing of God to provide for them everything they need.

In the Chronicles, the young king Amaziah was entrusted with the army of Judah.  He numbered them and prepared them for battle.  However, with only three hundred thousand men ready for battle, the king felt that he needed more soldiers.  So he contacted with Israel for one hundred thousand more men and paid one hundred talents of silver for their services.

The man of God came to King Amaziah and said that God did not want him to use the soldiers of Israel and if the king did so, God would not be with him.  It was obvious what had to be done, however, the King questioned the man of God. “What then shall I do with the hundred talents of silver that has been paid for the service of Israel’s army.”  The man of God replied, “God is able to give you much more than this!”

God is able…fully capable…ready and willing to give you much more if you will only learn to maintain his economic plan and manage what you have.  You can have the blessings of God on you life by obedience.

Money Matters - A Families Involvement In The Budget

Developing and maintaining a budget is a FAMILY AFFAIR.  If you are married, you must work together.  If you have children, this is the proper time to teach them how to operate within their means.

To make a budget work, there are some things that must be attended to prior to spending.

Together you should: 

• Decide on needed items and plan how much can be spent before going shopping.
• Always use a shopping list that has been approved by both spouses.
• Buy only the planned items.
• Compare prices and quality before buying.
• Use credit only when necessary for necessary items.
• Do not use credit for items that are not realistically needed.
• Decide together on a vacation spending
• Encourage each other of the benefits of saving
• Make realistic goals of being debt free
• Start gift shopping early and stay within a prescribed means
• Don’t over spend just to make someone in the family feel good.
• Decide how much to save on a regular basis.

Set down together and discuss the family budget and include in the discussion the benefits of becoming debt free for the future. 

Tax Time! - What is a Ministerial Housing Allowance?

Any licensed or ordained minister in the U.S. who performs ministerial duties and who is employed by the church qualifies for a housing allowance which is a great tax benefit. Housing allowances are not taxable to federal or state income taxes, so you can save taxes by utilizing the housing allowance. In general the rules are as follows.

To have a housing allowance, you must have a resolution pre-authorizing the housing allowance. A pastor cannot designate his own housing…it must be done by either the church board or the church membership. The amount designated goes to pay all housing expenses: rent or house payment, utilities, taxes, insurance, repairs & maintenance, upkeep, association dues, furnishing & appliances (purchase or repair). Any expenditure that is for the upkeep of the house you live in is included in the housing allowance.

The housing allowance is ONLY for your primary residence, not any other vacation home, etc. The allowance is paid by church funds as a portion of the overall compensation of the minister. The housing allowance used cannot exceed the actual expenses incurred for the housing expenses. The amount paid toward the house payment cannot exceed the fair rental value of the home.