Finances in the family

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Finances in the family

  1. 1. July 23, 2013 1
  2. 2. Introduction There 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. July 23, 2013 2
  3. 3. Ecclesiastes 7:12 For 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) July 23, 2013 3
  4. 4. Ecclesiastes 10:19 A feast is made for laughter, And wine makes merry; But money answers everything. (NKJV) July 23, 2013 4
  5. 5. 1 Timothy 6:10 For 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) July 23, 2013 5
  6. 6. Haggai 2:8 'The silver is Mine, and the gold is Mine,' says the LORD of hosts. (NKJV) July 23, 2013 6
  7. 7. 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 July 23, 2013 7
  8. 8. 2. Attitude to Money in the Home a. Discuss money openly. Aim at transparency/openness in everything, especially in money matters b. Avoid selfishness. July 23, 2013 8
  9. 9. 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 July 23, 2013 9
  10. 10. 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
  11. 11. Extra (miscellaneous) to afford for flexibility. Liabilities/obligations (debts, bills, remittances, blessing others). Buying food in bulk saves money and reduces financial stress. July 23, 2013 11
  12. 12. 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 July 23, 2013 12
  13. 13. 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.July 23, 2013 13
  14. 14. b. As a financial head, he must avoid stinginess, meanness, and irresponsibility. July 23, 2013 14
  15. 15. 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. July 23, 2013 15
  16. 16. 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 July 23, 2013 16
  17. 17. Unreasonable demands being made Murmuring Misspending Borrowing to maintain a certain lifestyle July 23, 2013 17
  18. 18. 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. July 23, 2013 18
  19. 19. But they, measuring themselves by themselves, and comparing themselves among themselves, are not wise. (NKJV) July 23, 2013 19
  20. 20. b. Accept realities in life. Don’t keep yourself away from realities. People under you will suffer as a result. Be an informed person. July 23, 2013 20
  21. 21. 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:
  22. 22. 1. 25% - Housing Spend not more than 25 % of net income on housing. That includes mortgage or rent, insurance and home maintenance.
  23. 23. 2. 25% - Food All food components including any snacks, used by the individual or the entire family must not exceed 25%
  24. 24. 3. 10%- Clothing All issues of clothing including salon and the barber.
  25. 25. 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
  26. 26. 5. 5% - Relatives We cannot ignore our relatives as this is our social responsibility. Set aside 5% to facilitate the relatives.
  27. 27. 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.
  28. 28. 7. 5% - Services Spend no more than 5% of net income on this. This includes telephone, water, electricity, gas, etc
  29. 29. 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.
  30. 30. 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.
  31. 31. 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. July 23, 2013 32
  32. 32. DON’T EAT EVERYTHING AS YOU WILL REGRET LATER ON IN LIFE. The key word here is INVEST. July 23, 2013 33

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