Finances in the family

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IntroductionThere are many references in the

Bible regarding the importance of money. However the Bible also warns us about coveting after money, which is the root of all evil.

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Ecclesiastes 7:12For wisdom is a defense as

money is a defense, But the excellence of knowledge is that wisdom gives life to those who have it. (NKJV)

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Ecclesiastes 10:19A feast is made for laughter, And

wine makes merry; But money answers everything. (NKJV)

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1 Timothy 6:10For the love of money is a root of

all kinds of evil, for which some have strayed from the faith in their greediness, and pierced themselves through with many sorrows. (NKJV)

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Haggai 2:8'The silver is Mine, and the gold is

Mine,' says the LORD of hosts. (NKJV)

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1. The Importance of Money in Every Venture

a. Money is the medium of exchange for everything

b. As long as we live in this world, it is indispensible

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2. Attitude to Money in the Home a. Discuss money openly. Aim at

transparency/openness in everything, especially in money matters

b. Avoid selfishness.

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c. Note that you both are the stewards of God’s money.i. Spend it according to God’s wishes and God’s Word.

ii. You are accountable to Him

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d. Manage your finances properly by budgeting. These are the areas that can guide you. God first ( first fruits (tithes),

offerings)Savings or some investments.Addressing your NEEDS, not

your wants.July 23, 2013 10

Extra (miscellaneous) to afford for flexibility.

Liabilities/obligations (debts, bills, remittances, blessing others).

Buying food in bulk saves money and reduces financial stress.

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3. Understand the Reality of Money in the Family

a. The mode of its operation must be discussed and mutually agreed upon.

b. The husband must not be detached from realities while the wife must not also be prodigal in her spending

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4. Understand Financial Headship

a. Headship of the home extends to finances as well. Therefore, no matter who earns more, the man must rule the finances of the home with wisdom and fairness.. He must have a clear vision or foresight for the home to better of the family, e.g. plans to own a home someday.

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b. As a financial head, he must avoid stinginess, meanness, and irresponsibility.

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5. Avoid Lack of Money Lack of money must not be a

permanent situation in the home. It is important to be mindful of the potential problems associated with lack of money, such as tension, quarrels, misunderstanding, mistrust, suspicion, etc. These should not necessarily occur in your home.

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6. Know the Danger of Covetousness

This condition normally arises when wives/husbands compare their property or children with those of others. It leads to:

Dissatisfaction in the husband/wife

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Unreasonable demands being made

MurmuringMisspendingBorrowing to maintain a certain

lifestyle

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7. Know the Dangers of Comparison a. Don’t compare yourself with any

other family. 2 Corinthians 10:12 For we dare not class ourselves or

compare ourselves with those who commend themselves.

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But they, measuring themselves by themselves, and comparing themselves among themselves, are not wise. (NKJV)

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b. Accept realities in life. Don’t keep yourself away from realities. People under you will suffer as a result. Be an informed person.

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The following percentages will give you good rule of thumb for what you should be spending as a percentage of your income on some of the major budget categories:

1. 25% - Housing Spend not more than 25 % of net

income on housing. That includes mortgage or rent, insurance and home maintenance.

2. 25% - FoodAll food components including any

snacks, used by the individual or the entire family must not exceed 25%

3. 10%- ClothingAll issues of clothing including salon

and the barber.

4. 10% -Transportation . Spend no more than 10% of net

income on transportation. That includes car payments, motor insurance, license, maintenance, fuel and parking, matatu fare, etc

5. 5% - Relatives We cannot ignore our relatives as

this is our social responsibility. Set aside 5% to facilitate the relatives.

6. 5% - Health and Education Spend no more than 5% of net

income on this. When you young, use 5% or more on developing your career . As you grow older you will need to spend this money on your health.

7. 5% - Services Spend no more than 5% of net

income on this. This includes telephone, water, electricity, gas, etc

8. 5%- Domestic i.e. House help or caretaker. The

people who work for you must be taken care of properly since they take care of you, your family and property.

9. 10% - Savings/Investments This is the amount that can

transform your future particularly if it is invested.

Save/invest at least 10% of income throughout your working life.

When you are young, you boost your savings/ investments to higher levels by forfeiting some things that are not very important. In my mother tongue we say that as you age, you will depend on you had invested when you were young.

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DON’T EAT EVERYTHING AS YOU WILL REGRET LATER ON IN LIFE.

The key word here is INVEST.

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