Financial Planning Guide for Christian Parents
Financial Planning Guide for Christian parents is a life-changing article that will turn your family finances around for good.
Is it wrong to plan? When Jesus told us not worry about food, drink, and clothes, wasn’t he promising to supply all our needs?
Read on and learn God’s guide to family finances.
Indeed, Christian parents can depend on God to meet their Christian family daily needs. But that doesn’t mean we shouldn’t plan.
When Joseph planned for the seven years of famine in Egypt by setting aside resources in the seven years of plenty, he was practicing sound financial planning.
When Nehemiah rebuilt the walls of Jerusalem, spent months in prayer, preparation, and planning before even arrived at the city.
David planned and collected the resources for his son Solomon to build the Temple.
Three Main Benefits Of Financial Planning Guide For Christian Parents
Benefit 1: Peace of mind: Probably the most rewarding reason for doing financial planning is the peace of mind that comes with knowing where you’re headed and how you’re going to get there.
A Christian parent who fails to plan is like someone who starts out on a trip, yet has no idea how long the trip will last or where he’s going.
The likely result is that he gets nowhere. The same thing happens when Christian parents manage their finances with no discerning plan. They are paralyzed with indecision and accomplish nothing.
Benefit 2: Basic of Communication: Developing a financial plan also provides a basis for family communication.
During the planning process, the family is required to establish and prioritize goals, and everybody knows what they are.
Once the family is committed to a plan, the reason for disagreement, which in most cases is uncertainty, has been handled once and for all in a reasonable manner.
Benefits 3: Guide for Decision Making: A financial plan serves as a guide for making ongoing decisions.
It also eliminates some options, decreasing the number of financial decisions that need to be made on a day to day basis.
For example, if the plan calls for the establishment of an IRA for a working Christian mother, then $2,000 has been committed for that objective and is not available for any other use, regardless for how attractive an alternative might look.
If money has been allocated for home remodeling or college education, the use of those funds has been locked in, and other possible uses don’t even need to be considered. In other words, a financial plan brings order.
How to Start a Financial Planning Guide For Christian Parents
Financial Planning Guide is usually drawn up in five steps:
- Assess Your Present Situation: This means answering such questions as Do you spend less than you earn? What percentage do you save? Is debt repayment taking a large portion of your cash flow? What percentage is being spent on your lifestyle? Is your insurance coverage adequate?.
- The second step of the Financial planning process is to Set Financial Goals: A goal is an objective toward which you believe God wants you to move, and it has two characteristics. First, a goal is defined by a specific dollar amount.
Second, a definite time frame is set in which the goal is to be accomplished.
Because goals are quantified, you can tell whether you’re accomplishing them.
- The third step is to make Decisions That Will Move You from Where You Are To Where You Want To Go: Those decisions are expressed in a short-term cash flow plan – a budget.
The plan summarizes in dollars how you’re going to spend your money.
Remember, the most important thing in making this plan is to spend less than you earn.
- The fourth step is to develop a way Of Ensuring That the Budget Plan Is Being Followed:
The simplest monitoring system is a set of envelopes. When you receive your monthly income, divide it into envelopes, one for each category, such as food, clothes, entertainment, donations, debt repayment, and savings.
Spending stops when the envelope is empty.
If your budget from step three and your monitoring system from step four are working, you should have at least a little money left over at the end of the month.
Step five is to decide How to invest that money. Jesus told us not to worry about tomorrow, and it is the Christian parents without a financial plan, who tend to worry the most.
Begin now to plan your use of God’s resources.
I Have a question For You
Question: How is financial planning a stepping stone to greater responsibilities? See Luke 16:10-12.