I would like to welcome my new friend Nicole Cascio to LIVE IT OUT! blog. Nicole has some great practical thoughts on managing money. Not always a fun topic but she makes it doable…I promise!
One of the biggest challenges us 20somethings face today is managing our money. Besides that one economics class senior year that taught us how to balance a checkbook, we are utterly clueless. You can imagine what happens when you put a 20something female into the world of credit cards, shopping, concerts, traveling and eating out. We tend to go a little crazy.
Our 20’s are definitely a time to have fun and enjoy life, but often times we slip into the temptation to adopt the “I’ll only be young once” attitude and spend more than we should. We get into a habit of unreservedly spending, and saving if (and only IF) we have money left over. When we do this, we fail to accurately see ourselves as stewards instead of consumers.
We must be good stewards of our money.
A steward is a person who manages another’s property or financial affairs. We are stewards of God’s money. He has given us resources and has entrusted us to use them in a proper way. Read the words of Jesus in Luke chapter 12. (You should read all of verses 42-48 later on).
42 The Lord answered, “Who then is the faithful and wise manager, whom the master puts in charge of his servants to give them their food allowance at the proper time? 43 It will be good for that servant whom the master finds doing so when he returns…. 48b From everyone who has been given much, much will be demanded; and from the one who has been entrusted with much, much more will be asked.”
It is vital that we understand our identity as God’s stewards if we are to successfully manage our money.
Getting Practical
Having a personal budget is a great way to steward the financial provisions God has blessed us with.
When my husband Charlie and I sat down to make a budget for the first time last month, we remembered listening to a sermon by Andy Stanley where he explained the 10%-10%-80% principal. It is as so: first give 10% of your income, then save 10% of your income, and live off the rest (80%). This has been a very helpful first step for us in organizing our budget.
The 10%-10%-80% principal is a good guide, although apart from the tithe, it is not directly found in the bible. So prayerfully consider how God is calling you to divvy up your income.
After you have divided up your income into the 3 categories above, begin to break down the third category-which is the money you are to “live off of.”
1. What is the total cost of your monthly bills (rent, insurance, phone, internet, etc.)?
2. How much should you spend on necessities (groceries, gas, laundry etc.)?
3. How much do you have left over for entertainment (dinner with friends, movies, traveling, etc.)?
The goal is to live on the rest, so don’t be afraid to spend all of the money in the third category. If you don’t spend all of that money, than you have already established what percentage of your income you live on.
You Can Do This!
I believe in you! I know it’s not always easy to examine yourself and make the changes needed. The key is not necessarily knowledge, but discipline. It takes time to get organized and develop a personal budget that works for you. You can grab a step-by-step
eCourse on how to make positive changes in your finances for free on my
website.
When organizing your finances keep in mind that you are “no longer your own.” (1 Corinthians 6:19-20) We belong to Christ, and we are citizens of His Kingdom, not ours. We are merely servants, given a specific amount of resources to manage. Stay strong, God is for you! Jesus made himself poor and gave ALL of Himself, so that we can become rich. What an amazing gospel. Think about your finances with an eternal perspective; we are not consumers but stewards.
