In a recent Ensign article, “Focus on Family Finance”, Allie Schulte of Church Welfare Services offers some great advice on the Lord’s financial plan for LDS church members, taken from the All is Safely Gathered In: Family Finances, an official church publication. Here’s what I learned from Sister Schulte’s article:
- Although members may be faced with financial trials, they can feel secure as they turn away from the philosophies of the world and rely on the gospel of Jesus Christ and the counsel of Church leaders.
Here are five basic principles aimed at helping us survive the financial storms of Mormon living:
1. Pay Tithes and Offerings
Obedience to this commandment brings peace and security. As Church members pay tithes and offerings they will experience miracles in their lives.
2. Avoid Debt
If Church members are in debt, they should pay the debt off as quickly as possible. A debt-elimination calendar is a great tool to help individuals create a specific plan to become debt-free. After creating a plan, members can make it a priority by making their necessary payments immediately after paying tithes and offerings. Above all, members should be patient with the time it may take to become debt-free by relying on the Lord for help and striving to follow His commandments.
3. Use a Budget
Church members can manage their spending by creating a budget. Using a budget worksheet, members can look at their income and spending from the last week or month. By determining where they spend most of their money, they can also look for ways to cut back. Then they can create a budget by estimating income for the next week or month and planning where they want their earnings to be spent. After tracking their spending, members can evaluate whether they complied with the budget and make adjustments for the next week or month.
4. Build a Reserve
While planning a budget, members can also determine a specific amount of their earnings to set aside for savings. It does not need to be a large amount. As long as they are consistent in setting aside that money, it will add up quickly. Develop the habit by putting the money into savings immediately after paying tithes and offerings and making payments on any debts. Do not be tempted to spend savings on unnecessary things. Instead, reserve them for emergencies. If Church members strive to discipline themselves, they will be prepared for financial trials. Once they have established a financial reserve, they can continue saving for future needs like missions, education, retirement, and other necessities.
5. Teach Family Members
Parents can involve family members in creating a budget and setting financial goals. They can teach them the importance of working for an income, prioritizing their spending, and preparing their own budget to track expenses. They can also provide a way for them to pay tithing and to save money for missions, education, or other expenses. Family home evenings can be great opportunities to discuss and teach about financial topics. Each family member can contribute to the family’s overall self-reliance, and the entire family will recognize the blessings that come from following the Lord’s counsel for financial planning.
July 1st, 2009 at 9:43 pm
My favorite part of that article was under the “Use a Budget” section, where it said, “While individuals often think that financial security depends on the amount of money they make… how money is spent– whether large or small– is the source of true financial peace and happiness.”
I used to work for a lawn care company where we cared for the yards of many people who make six figure incomes, but they would always complain about how little money they have. Like it says– It’s not how much you make, but what you do with what you make.
I make (probably) little compared with most my co-workers, but because I budget my money, I am probably the most financially secure.
July 2nd, 2009 at 11:21 am
Thanks for sharing, Jeffrey. You’re exactly right - it’s not about how much we make, it’s about how much we spend and HOW we spend it!