A Christian view of financial planning

Christians begin with the awareness that all we have, life, health, financial resources, talent and abilities are gifts from God. What we do with those gifts is an indication of our stewardship. The tithe, or the proportional gift, is a witness that the first fruits, not the leftovers, belong to God. Somehow, the careful financial planning that is entailed in a tithing family enables that family to prosper by the grace of God.

Some people think they can't afford to tithe. Really, we can't afford not to. Our responsibilities to others and to God must take priority and enable us to see our other priorities more clearly.



FAMILY FINANCIAL PLANNING CHART



1. What are your objectives? Where would you like to be financially five or ten years from now? College for the children? Retirement?

2. What will it take to accomplish these goals?

3. We want to save _____ per month to reach this goal.

triad of investment strategies: don't try to get rich quick; save for the long haul.

1. Cash reserve

2. Insurance

3. Investments: stocks, real estate

The best first investment is to pay off consumer debt. This will save you 15 to 21 percent annually in finance charges.

for example:

annual salary/wages: $25,000

Net take-home pay monthly: $1,458 (wages minus FICA and witholding)



food 20% $292

housing 20% $292

utilities 10% $146

clothes 10% $146

transportation 15% $219

insurance 3% $44

savings 5% $73

church/charities 10% $146

recreation 5% $73

incidentals 2% $29

100% $1,458

the average American family spends 103% of their income. Percentages vary with income levels--for instance, folk in upper income brackets spend a lower percentage of their income on food, but other expenses tend to increase proportionally.

now, try it yourself:

monthly budget

budget actual
food
housing
utilities
clothes
transportation
insurance
church/charities
recreation
savings
other
totals

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