Over the years as a Pastor, I have often been asked to help with personal finances. In 2005, I saw the need for a greater education for people within the church. So…I went back to school and obtained my licenses as a financial professional. I realized that Jesus said, “The people of this world look out for themselves better than the people who belong to the light.” Luke 16:8 CEV. I figured as believers we needed to know about how money really works. I believe the reason people in the world are smarter than most Christians concerning money is because money is their God. They know how to worship. We need to be as smart as they are concerning this topic. Here are a few simple suggestions for couples.
Create A Budget You Can Both Live With
A good rule of thumb for most couples is what we call the 50-20-30 rule. This rule allows couples to effectively allocate their expenses into three categories:
- 50% Living Essentials – includes rent, transportation, insurance, food and utilities.
- 20% Financial Goals – includes debt-reduction, savings and investments
- 30% Flexible Spending – includes items that you want to buy, but don’t necessarily have to.
Many couples like to establish separate bank accounts helping them better control their spending. This of course is a matter of personal choice, but you must always communicate concerning finance. I highly recommend that you talk about finances weekly (not weakly). To avoid the pitfalls common to everyone, communication helps with accountability and will result in a reduction of impulsive spending.
In my next blog, I will explore the Dos and Don’ts of finance.