Christian Budgeting: There Really Is A Biblical Way

Adding the word Christian in front of things to make them spiritual is one of my pet peeves. “Christian lawn maintenance.” “Christian hair care.” “Christian exercise.” Yet, here I am seemingly doing the same thing. I want to talk about budgeting today, specifically household budgets. However, I’m taking an approach that makes it undoubtedly Christian budgeting. You see, like most things, Christians ought to approach their household budgets differently than how the world teaches us. We need to see what the Bible has to say.

How The Bible Addresses Budgeting

I must confess that the Bible does not address American household budgets circa 2021. Like, “Thou shalt cancel cable and get a streaming service” is not in there. However, the Bible has a lot to say about money and our relationship with money and things. Below I have created a list of six principles regarding money found in Scripture that Christians should follow when creating household budgets.

1. We are stewards of money, not owners.

People do not seem to like being told that their money is not really their money, but it isn’t. God has given us the money we have, but ultimately, it belongs to Him. Psalm 24:1 says, “The earth is the Lord’s, and the fulness thereof; the world, and they that dwell therein.” Basically, everything is His.

The Bible gives an extreme example of stewardship in Genesis 41. The Pharaoh, after learning of the impending famine, put Joseph in an important leadership position. Actually, Joseph was so powerful that only Pharaoh was above him! Joseph spent seven years carefully budgeting the food grown in those years of plenty while he planned for the seven years of famine to come. He had more than he needed at the moment, and rather than be impulsive and live for the now, Joseph wisely planned and saved in preparation of the hard times to come. He acted carefully and purposefully with both the food and knowledge that the Lord had given him in order to prepare for the hard times ahead.

2. We are to be givers.

Yes, we should save and plan for difficult times. On the other hand, we need not hoard our money and live in such a way that we are unwilling to help those in need or give to an important cause.

Does God say anything about giving? You bet He does! In Matthew 6:2-4, Jesus addresses the crowd about giving by saying “when you give.” Not if. Not perchance. When. It is an expectation that we give, and now that we know we are just stewards of His money…why wouldn’t we?

I’m definitely cheap. I don’t like to spend a lot of money, and I look for the cheaper version of almost everything. My husband, on the other hand, would give it all away if it weren’t for me and the kids. I guess you can say we balance each other out. Well, I finally got to the point where giving wasn’t painful to me any longer, but then I realized I still wasn’t doing it right. Second Corinthians 9:7 tells us God loves cheerful givers. So, don’t just give, but do it out of love and with cheer instead of begrudgingly like I did.

3. Be content with what you have; Don’t covet.

I’m originally from suburban Chicago, and the area seems to run on covetousness. That’s a broad brushstroke to make, but the desire to keep up with others and have what they have is so overwhelmingly in your face where I grew up. It’s difficult not to generalize a bit. I personally find it exhausting, but I also completely “get it.”

Early in our marriage, my husband and I lived there, and it is so easy to feel left out when your financial priorities are not aligned with the Joneses. True story: After moving to central Illinois, my husband was teased and made fun of by co-workers because of his cell phone. It was a completely high school mentality weaponized against my husband, but I was so upset people would treat him that way that I ended up buying him a new phone. I fell for it!

In the end, Hebrews 13:5 says it perfectly, “Let your conversation be without covetousness; and be content with such things as ye have: for he hath said, I will never leave thee, nor forsake thee.” This is easier said than done sometimes, but it is essential to successful budgeting.

4. Avoid debt.

Proverbs 22:7, “The rich ruleth over the poor, and the borrower is servant to the lender.”

Have you ever made the final payment on a car or mortgage? It’s euphoric. Debt carries an emotional weight with it. Every month you earn money, and every month, without fail, the bill collector’s hand is out and at the ready for payment.

Have you ever wanted to go on a big vacation or buy something pricey for your family, but you didn’t have enough spare money to do it? Those debts control other parts of your life. You want the freedom to make decisions about your life, and debts can make that impossible. You serve the desires of the lender, namely your money, until you have paid all you owe. Meanwhile, your financial goals take a backseat.

5. Think ahead and plan.

Without a plan, money seems to disappear. I can’t remember how many times I have wondered where all my money has gone by the end of the month, and I’m embarrassed to even think about how many times I didn’t really have anything to show for it.

Proverbs 21:5 says, “The thoughts of the diligent tend only to plenteousness; but of every one that is hasty only to want.”

That verse makes me think of the well-known story of the grasshopper and the ant. The grasshopper is lazy all summer and does not plan for the cold, dead winter ahead. The ant, on the other hand, works hard and plans ahead. The ant is comfortable and has plenty. The grasshopper, though, is cold and hungry. Our homes work very much in the same way.

We all know someone who never seems to be prepared. They need you to cover them when you go out to lunch. They don’t have predictable needs met because they are “a little short this week.” That can be true because of legitimate reasons, but it’s often due to living in the moment and spending impulsively.

6. Don’t love money.

We need money, especially if we plan to eat and have a place to live. If we make enough, that money can even help bring us some temporary happiness. I love taking small trips with my family, and I cherish the memories we make with each other. However, that’s all temporary. Money can’t give me anything eternal.

Exodus 20:4 gives us the second commandment. We are to not make any idols. Oh, boy… Sounds easy. My kids always think back to the golden calf, and we all laugh at how silly it seems to us. But money can be an idol, too. I bet you know a person (or many people) who loves money and makes it the first priority in her life. It’s easy to do.  Tread carefully. We need money, but we need the Lord more. And we can only be fulfilled and have all our needs met by God.

Practical Budgeting

With Biblical principles in mind, we need to think through the practical reasons for why we want to make a household budget.

1. Budgets ensure you do not spend more than you make.

We think we are good at having an idea of how much we have spent throughout the month. However, think about how many times you have seen the total after a cashier has rung up your cart at the grocery store, and you felt certain she charged you too much. But she didn’t. Yeah, we aren’t good at this.

2. You might want to retire.

Social security is uncertain, and we’ve seen the housing market implode. Stocks soar one day and crash the next. Bitcoin. That’s a thing now. I don’t have answers, but I know that we need to save our money and invest it somewhere in something. This doesn’t happen without a careful plan, and, if you are like me, with a little professional help.

3. Emergencies happen.

Budgets allow you to plan where you will spend your money, and saving rarely happens unless you plan to do it. I wonder how many people have relied on a savings plan of “whatever’s left at the end of the month” and had success. I’m guessing zero.

Money that exists solely for emergencies lets you get out of survival mode. When your husband hits a deer or drives into the garage with the rear door open, then you have the money ready to pay for those repairs. (These are just random examples of things that may or may not have happened in my home.) Taking from the emergency fund means your monthly spending doesn’t have to be disturbed.

4. You can do things you WANT to do with your money.

A budget shows you how much money you have and where it goes. It also makes it clear how much you have left after the necessities. “Extra” money can go into saving for vacations, a new car, furniture, etc. You might even feel led to give more once you see how much you have.

How To Create A Budget

My husband, Chris, and I were dating when he asked me to help him get control of his finances. He printed out a budget sheet, and we sat down to walk through it. As we filled it out, I discovered something about my Big Picture boyfriend. He did not understand how money worked!

Chris filled out all the lines on the worksheet with the amounts he wanted to see in them. For example, he wanted to save hundreds of dollars a month for travel, and he wanted to budget hundreds more for going out to eat. We added it all up, and the light dimmed in his eyes a bit. He needed a much larger income for the budget he created. He made changes after that, but it definitely opened my eyes to American spending habits.

I wondered if he was an anomaly or if other people approached spending like him. According to Debt.com, a Gallup poll found that 32% of American households had a budget. So, apparently, budgets are not as common as they should be.

The Math

Creating a budget is easy. It’s also hard because sometimes seeing the numbers can be scary. It really is necessary, though. So, take a deep breath and dive in.

1. Determine your income.

This is easy for some, and it’s a bit more work for others. The self-employed and people who receive tips, for example, need to put a little more thought into it.

2. List out all your FIXED payments.

This is also fairly simple. Fixed payments are the bills you have to pay every month that do not change. Examples include your mortgage, phone, car, and internet.

I would encourage you to consider putting your charitable giving in this category. As Christians, giving should be a thought out and regular activity instead of giving a small amount of whatever is left over that month or the change sitting in the bottom of your purse next to your gum.

3. Determine how much you have left.

This step is not necessary, but I like doing it because it helps guide how much I budget in other areas.

All you do here is take your income and subtract your fixed payments from it.

$3,000 (income) – $1,000 (fixed) = $2,000 (These are just fake, easy-to-use numbers.)

Now you know how much you have left for the rest of your budget.

4. List out all your FLEXIBLE payments.

These are regular bills that do not have a fixed amount. Examples would be groceries, gasoline, electric, credit cards, etc.

Special Note: Groceries and gasoline are usually in your control. After seeing what you have left after the other flexible payments, you can set the amount for these based on what you have left and your goals. The key, though, is to stay at or under the amount you budgeted.

5. Determine your DISCRETIONARY amount.

Add up your fixed and your flexible payments. Then, subtract that total from your income. The amount left is your discretionary money. It’s money you can use for what you want.

$1,000 (fixed) + $1,000 (flexible) = $2,000

$3,000 (income) – $2,000 (fixed and flexible) = $1,000

6. Decide how to use every last penny of your discretionary money.

This money might go to vacations, savings, retirement, clothing funds, gifts, or holidays. I suggest saving for big gift-giving times all year long. For instance, I save the same amount every month for Christmas. I can’t afford to be hit with Christmas all at once without putting my purchases on my credit card, so I save a little every month to reach my Christmas fund goal.

I also suggest looking at the whole year for bills that pop up annually like renewals to memberships or your car registration.

If this sounds like a lot, then search for “free budget worksheet” on your preferred search engine. You’ll find plenty, and they usually have a ton of categories listed to help you think through a plan. A great resource is Money Saving Mom. She has a lot of great tips about budgeting and free resources.

Final Thought

A post about budgeting might not seem on brand for me. Is this really “set apart?” Will having a budget make you faithful, obedient, and counter-cultural? Yes and yes. We’ve seen that God expects us to be good stewards of the money He gives us, cheerful givers, content with what we have, debt-free, money planners, and to maintain a healthy relationship with money. If you faithfully trust God’s plan for how to handle money and obey His instructions, then you will most definitely be counter-cultural. Treat your money like His money, and you will have a Christian budget.

Image courtesy of NORTHFOLK via Unsplash.