3. Take care of your family first.
Before we can afford to give financially outside of our tithing we need to have stability in place for our family. Stability would be to be out of debt (besides your home), have 3 months of expenses funded in a money market account, have a 20 year term life insurance policy that covers 10 years of your income and construct a will. Once these steps have been taken you are in position to build momentum but also prepared to leave your family in a comfortable financial situation if you get hit by a bus. You can get a half a million dollar policy for less than the amount you pay in Starbucks each month. Put your family first. “But if any do not take care of their relatives, especially the members of their own family, they have denied the faith and are worse than an unbeliever.” 1 Timothy 5:8
4. Take care of your future
If we can find contentment in our lifestyles since our budget should have funds allocated for vacations, entertainment, miscellaneous and restaurants. Then we can also balance out the fun things in our budget with the line items that need to be funded to take care of our future. Yes retirement. You’ve read 132,639 times to put funds away towards retirement but you just can’t let go of that 10-15% of your paycheck that you are currently using for today and instead use that % of your paycheck for tomorrow. You’re either missing out on free money that your employer will match in your 401k/403b or if your employer doesn’t match you’re missing out on the opportunity of your money accruing tax-free in a Roth IRA.
Outside of retirement we must put funds away each year towards the kids college. Look into an Education Savings Account or a 529 today that will give you the freedom to not pay taxes on the growth and use the funds to cash flow the kids college. This doesn’t mean the kids have an over the top social life and go to class occasionally (I had that problem the first two years). I believe it means they have the opportunity to pay for classes without going into debt while working 10-20 hours a week to pay for other things the kids have on their budget. Imagine the financial freedom your son or daughter will have by avoiding student loans and ready to build wealth straight from graduation!
Remember our greatest wealth building tool is our income. What are you choosing to use your income for?
“Wise people live in wealth and luxury, but stupid people spend their money as fast as they get it.” Proverbs 21:20