Key #5 To Successful Money Managing

Key #5: Be wise about when and where you spend money.

Yes, that is pretty vague. We could spend hours debating what is and isn't wise to spend our money on. Here's the principle I'm driving at with this point: create and stick to a budget.

It does take time and effort to maintain a budget. It is difficult to refrain from buying something we'd really like to have (more on that in Key #6). But keeping a budget is a perfect way to be responsible with the money God has given us to manage.

The Bible doesn't necessarily say the word 'budget', but does refer to budgeting principles in Proverbs 24:3-4:

A house is built by wisdom and becomes strong through good sense. Through knowledge its rooms are filled with all sorts of precious riches and valuables.

And in Luke 14:28-30:

“But don’t begin until you count the cost. For who would begin construction of a building without first calculating the cost to see if there is enough money to finish it? Otherwise, you might complete only the foundation before running out of money, and then everyone would laugh at you. They would say, ‘There’s the person who started that building and couldn’t afford to finish it!’

Now, just before these verses in Luke, Jesus is talking about counting the cost of becoming his disciple. I'm not trying to take verses out of context to make a point. But, Jesus does reference the fact that it is foolish to take on financial responsibilities without having a plan. Spending and spending without a budget not only leaves a person wandering aimlessly in their present finances, it also makes it impossible to determine where the money has gone in the past and where it will go in the future.

Through the use of a budget, we are able to abstain from unnecessary debt and take advantage of interest accumulated over time. Which brings us to Key #6...

View Key #1 here.
View Key #2 here.
View Key #3 here.
View Key #4 here.