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Budgeting for Pastors

By Dr. Richard J. Krejcir
How to live on a shoestring budget for anyone.

 

"The earth is the LORD's, and everything in it, the world, and all who live in it" (Psalm 24:1)

How to live on a shoestring budget for anyone.

Those of us in full-time ministry usually have it tough, no matter where in the world we live and minister.  You can be making $120 a month in India with a dirt floor and four children or doing ministry in Manhattan, NY and making $5,000 a month as a single.  In both cases, you are on the poverty level.  We do not make much money in our profession, and according to the research, 53% do not even make a livable wage. We are on a very strict budget; some still can't pay our basic bills and the rest of us struggle month-to-month.  Besides praying and remaining faithful, what do we do?

Adding insult to injury, many pastors will feel the effects of Christians who connive against us, who take advantage in the form of anything from an investment scheme to a multi-level marketing program.  Then, there are those who say we should not make any money at all--just rely on God to pay our way.  Paul went through this!  He saw his plight as His service of stewardship to our Lord!  Suffering for the church is like continuing the suffering Christ did for the Church!  This is not about being abused; it is about being totally dedicated to serve, in wisdom, and not be self-centered or only pursuing what suits and pleases us as leaders (Colossians 1:24-29).

First off, there is nothing better than prayer!  The second?  Never invest or buy into anything that you have not fully vetted and have the time for.  I have made those costly mistakes. Then, we need to make wise decisions on how we spend our money and keep in mind a Biblical concept of what it means to be a steward with Kingdom resources.

Be a Steward!

The word, stewardship, simply means to manage someone else's property.  For the Christian (that includes us), Scripture proclaims everything belongs to God--we manage the property of our Lord.  Since everything belongs to Christ, we need to have the attitude and view that our things are His things, our stuff is His stuff, our income or lack of it, well, is His too.  That's all we could have now, all we have lost, all we will have, is His, including our very bodies and spiritual gifts.  We are mere lessees of the property, money, relationships, talents, time, and even our lives. That means all that we are and all that we have are not really ours to begin with. All of it belongs to God.  So, our duty is to learn how to become responsible stewards of our Lord's resources entrusted into our care.  So, we can manage with our best due diligence, everything to the best of our abilities for His glory (Proverbs 3:9-10; Matthew 6: 1- 4; Romans 12:6; 1 Corinthians 4:1-2; 6:19-20; 2 Corinthians 8-9; Ephesians 5:15-16).

Try to see it like this:  we are on a playground that God owns, building equipment for the furtherance of the kingdom.  At the same time, the storms of the devil and our complacency cause a hindrance and breakdown of the work. With spiritual strength, we can fend off the devil; but, it takes diligence and a will surrendered to God to build the park and play the game.

God has given us the responsibility with our "church stewardship," and when we lead, we have to take this seriously.  Our church leadership responsibility is simple; we are to proclaim Christ's message and be His display case for others to see His Word and Work. This is also an incredible opportunity and privilege as countless others through the millennia would love to have this occasion that many of us squander or misuse or become apathetic about!  We should be pleased to tell people about Christ and His message, and we should do so cheerfully as God cheerfully gave it to us.

God is concerned with what is in our hearts, and a good heart has responsible character assigned to it. That is what being a good steward means.

The big 'secret' is to effective church stewardship is simple.  It is where our focus and trust is placed:  Christ, the One True God and Creator of the Universe, lives in us as believers.  He is our assurance, hope, and reason for all we are and do.  We, as leaders or not, should be grateful to share with others as we display His Glory.  Let us learn and grow so we can be better at knowing Him and showing Him as we depend on Christ and His Mighty Work in us—empowering us!

Do Not Worry!

Have you considered that how we deal with stress is an act of worship and stewardship?  Stewardship is not only about money and time and talents, it is also about managing who and how we are to be (Matthew 6:31-34).

Ask yourself this:  How can worry help you?  When we have worry at our side, we will doubt the capability, goodness, care, love, and power of our God.  We cannot obtain the goals He has for us.  We are not seeking Him or trusting in Him.  Instead, worry has our attention (Rom. 8:31-39).

How can we counteract worry?  As the Matthew 6 and Romans 8 passages taught us-–by laying up treasure in heaven.  If we take to heart what Jesus says, then our lives will be like the house built upon a rock. We are not capable of handling tomorrow's worries, because we have no control over the future.  Worrying about the future will only distract us from the duties in the present. Trust in God!  People without God naturally have a real need to worry about these things.  However, if you have received His grace, and He is ruling in your heart, you do not need to worry (Matt. 7:24-25; 19:21; Luke 12:33-34; 1 Tim. 6:17-19)!

Do not let Jesus be a concept.  Let Him be your LORD (Matt. 13:22)!

We have to understand that when we worry about trivial things, lust after the goods, and riches, even the things we need, it will choke from us the life we could have had in Christ.  It is our relationship with Him that is important!  It is this that we should seek.  We are to seek His provisions for every aspect of our lives and work all we can to help fulfill it.  If we do not pay attention to Jesus' teachings because we are too busy worrying, we may go through life on earth without His help.

Be on a Budget!

It is not hard to do, and it will make your life so much easier!  Instead of thinking of a budget as a negative thing, remember that a budget is simply a tool or a "game plan" for your financial plan.  We need to have money to live in today's society.  Because money is a necessary aspect, we need to create, apply, and follow the plan.  In doing so, we can be wise stewards with what God has blessed us, and we can competently handle money, time and things—all gifted to us for the glory of Our Lord.  A well-designed budget considers necessities, generosity, and desires and benefits everyone—you, your family, your church!

This is all about telling your money what to do, not allowing your desires to 'defund' you.

How do we do this?  You need to have a plan.  This starts with a biblical concept of how to deal with your money and debt.  First of all, do not be overwhelmed!  Money is not for power and control; it is a tool for effectual living and our Lord's service!

  • First, know your total net income (what comes in).
  • Then, count all of your expenses (what goes out).
  • What are the basics for living: mortgage / rent, utilities, insurance, food, giving, clothing, entertainment, child care, outstanding debts, medical / dental, vacations, Investments, school, savings, taxes, taxes, miscellaneous…?  Write it out, do the math. Go to www.crown.org for further assistance.

Allocate your monies to food first, then shelter, bills, debt, entertainment and miscellaneous spending.  Make sure you account for your giving and savings off the top.  Be honest about your needs against your desires.  Look at what is worthy and what is wasteful.  Going to Starbucks once a month isn't necessarily wasteful.  Going to Starbucks every day is a bad and wasteful plan.  $250/mo at Starbucks or your own coffee maker and coffee for $15/mo.  Going out to lunch once a month for $25.00 is probably not a budget-buster; going out for lunch daily for a month at $350 is.  Besides the financial benefit of packing your own lunch, you also control what you eat.  You will feel better when you eat good, healthful food.

You are a money manager for God as it all belongs to Him, and we work for Him!

The goal is to always make sure the income is greater than the expense.  Kindly and honestly communicate with your spouse.  Make sure you set the budget together and that you are both fully aware of the realities.  Work together.  Put the plan on paper, pray about it, and discuss it together. If you need a template for examples, go to crown.org or biblicalstewardship.net.

Here are more helps:  http://biblicalstewardship.net/how-to-make-a-family-budget/ 

Debt

Do not have debt. If you do, pay it off as soon as possible, especially credit cards and personal loans.  If you can't manage a credit card, do not have one.  Stick to a debit card and have a good budget to guide you.

We love our credit cards!  They are convenient.  And, they can be dangerous. Credit cards are a tool when you are in a great need, and it is always best to pay them off each month.  Credit cards are not an "extra" source of income!  They are not your's to use as your entitlement; you do not "need" or deserve credit.  When we understand this, we will be on the right track of money management.

Good debt is what is helping you build your future to take from today and build a better tomorrow. 

Good debt may be a home mortgage that builds equity and is a place for you and your family to live and thrive.

It can also be a business loan, which allows you to build a way to provide you and your family's future while providing jobs and a beneficial service to your community.

Student loans can be good, too; but, be very cautious.  They can't be forgiven or used in bankruptcy and may take up to 30 years to pay off.  They will stifle you from owning a home or building a future.  Only use them if you must when scholarships and other means are exhausted.  Pay them off as soon as you can.  If you will not have the income to pay them off early, do not get them.  Prolong your education by taking online and community college courses in conjunction with your traditional classes, work as you go, and graduate when you can be debt free.

Bad debt is taking money away from your future that you need to live and build upon and stealing it away for pleasure or a perceived need today.

Bad debt includes credit cards of any sort.  Using store credit cards to fund your shopping sprees ensures that you will paying for your purchases long after the goods are worthless to you.

Car loans are best not to get.  Use only cash, if possible.  If you must and if you can afford it, get a reliable car that is three or four years old, after ½ the value is deprecated. You will save tens of thousands of dollars.  Do not get a brand new car; it is bad stewardship, unless you need it for work and will have it for more than ten years. It is way better to buy a good used car (like a Honda, Toyota, Subaru or Ford made after 2010, not a Chrysler or Fiat because of bad reliability or European, too much in maintenance), than new.  Never lease unless your church or company gets a tax credit and pays for it.  The math on a lease is never better than a purchase.  Can't afford a three-year-old car?  Choose any 4-cylinder Honda or Toyota that is well maintained, 94-07 is best.

Big Tip: Credit cards.  Do not get them! 

Second Big Tip:  Paying off credit cards with a wise strategy involves paying the minimum balance on all cards while making extra, bigger payments to the account with the smallest balance.  Once you pay off the smallest balance, put that money toward the next lowest balance.  Repeat until you are debt-free. The math expiates the payoff in that way faster than just a little more on each one.

Preparations!

After a budget is made, there is the practice.  Here are some tips I learned over the years:

Make sure your Elders know your situation.  Have trusted people pray for you.  But, never use the pulpit to lament your situation!   The Pulpit is to point to Christ, not to yourself.

Try to set up an Emergency Savings Account.  Start with $1,000, and slowly as you can, build it up to a six months of your income.  As pastors, we sometimes find ourselves suddenly out of work and not eligible for unemployment insurance.  We need to be prepared for unexpected expenditures, from the car to emergency travel.

Make sure you have appropriate insurances, health, life, property (even if you rent) and auto (AAA usually has the best for the USA). 

Will. If you do not have a written will, the state and federal government will take it all. This is essential if you have children.

The key to successful generosity is the same as in our faith development, where being active is the deployment of our faith.  See your faith and your stuff as products from God, where faith is His work in us, and our stuff and desires need to be His implements. Then, you will be able to make healthy decisions based on the Word and character of our Lord and not on personal agendas and political power trips. This is necessary if you are to effectively establish unifying goals, to anticipate and adapt to change, to encourage leadership initiatives, and to ensure that budget allocations are in accord with ministry priorities.

Your personal life and family will succeed when you focus on Christ and not problems!

 

© 2016, Rev. Richard J. Krejcir, Ph.D. Schaeffer Institute of Church Leadership, www.churchleadership.org

 

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