I drove to work and thought about money. I drove home and thought about money, always calculating. I lay in bed that week and calculated how much I’d earn that month and how much we needed for bills. Why isn’t there a money bible that everyone can read and follow?[1]
Take that first step by asking those money questions
While vacationing in Europe, I was asked, “How do you keep finances on track when there are so many needs to be met?”
The woman asking knows I lead financial classes and the question was a good one. She’d taken that first bold step to voice her concerns about how to strike a balance for a family of five with college costs and a grade school child to raise. The answer isn’t easy when the expenses come at us from so many directions.
Remember to ask the Lord for guidance
For me, I first ask the Lord to guide my spending decisions. Prayer plays an important role in money matters, too. The Lord wants us to seek His guidance in all aspects of our lives and, surprisingly, the money stretches farther when we do.
Matthew 21:22 If you believe, you will receive whatever you ask for in prayer.
Create flexibility in the budget
Is it possible to keep the budget on track? The answer is both yes and no. It will depend on how much flexibility can be built into the spending plan.
It’s important to be realistic by leaving room for unexpected expenditures in the budgeted categories. Then, when guests or spontaneous events come around to enjoy, there will be money to tap into.
For example, if the entertainment category is already allotted $200 per month, perhaps adding an additional $100 will make a big difference in the family’s ability to extend hospitality or participate in unforeseen happenings.
In months where the excess isn’t needed, leave it to accumulate for a month when the need is greater. There’s simply no substitute for factoring in a financial margin. When we respect flexibility’s place in our budgets we are rewarded with greater peace of mind.
Share the load
Share the load. Some costs shouldn’t be entirely a parent’s responsibility. In fact, parents can jeopardize their own financial future, or stall financial maturity in their child, by not expecting a son or daughter to have some skin in the game. Be honest when it comes to sharing college costs. Your student needs to know upfront how much financial burden will fall on their shoulders. Together formulate a plan where work and school can strike a pleasing balance. If necessary, seek the advice of a trusted third-party adviser.
Begin an open dialogue
The first big step to success in money matters is to ask the questions that need answers. Don’t let pride get in the way. This begins an open dialogue of multiple questions and and might necessitate the need to consult more than one trusted individual.
[1] Ed Baker, The Elephant in the Room, 2007, p. 55-56
