Fundamentals

Finances can be broken down into the following buckets: Saving, Giving, Spending, and Investing.

Philippians 4:19 sets the precedent when it comes to our perspective on finances. It is truly a liberating and humbling moment when you realize that God owns it all. He desires us to be exceptional stewards, which at its core means managing someone else’s property (in this case, God’s money). Categorizing our money into different buckets can give us a system to ensure we are meeting our current needs as well as preparing for the future.

Assign percentages to each bucket and dial them in to meet your financial goals. Our goal as Christians is to follow the biblical practice of tithing, which means setting our Giving bucket to 10% of our salary (see Leviticus 37:30-24 for further details). Set this amount to the side from the beginning. Many people don’t see giving as an initial priority and give whatever is “leftover” from their budget to God. However, He wants our offering first, and giving with a heart of gratitude shows God's thankfulness for His provision.

The other three buckets will vary per individual circumstances. General rules of thumb would be Saving 10-30%, Spending 20-40%, and Investing 5-20%. Again, it’s important to discuss this with your spouse and determine percentages that you both agree upon. Once you determine your percentages, it becomes a simple math problem.

The beauty of this system is that when you are blessed with extra income, you will have a set plan in place to distribute the funds. Take it one step further and start showing your children how you break down percentages. This will be illuminating for them to see firsthand how their family models intentionality regarding finances.

Question to Consider

1. Do you practice the habit of the tithe?
2. When you give, do you do so out of gratitude or obligation?
3. How would a shift in mindset from “owner” to “steward” help you in managing your financial blessings?
4. What actions will you commit to today to be the leader God intends you to be?