A Formula for Financial Freedom (2 of 6)

As with any great plan, we need to begin with a goal in mind. I suggest to you that the goal of budgeting is generosity. We want to be wise with our money so that we can bless others. So a good budget should lead to financial freedom—freedom from debt gives us the freedom to be generous. With that in mind, here’s what a formula for financial freedom might look like.

GENEROSITY = GROSS – (Tithe + Tax + Thrift + Tally + Treat)

Let me explain. We all know by now that money doesn’t grow on trees. The Apostle Paul’s rule was, "anyone who is unwilling to work shall not eat." Proverbs 10:4 says, “Lazy hands make for poverty, but diligent hands bring wealth.” The only other way I know to get money is the tooth fairy, but I haven’t lost any teeth for while. So this formula is assuming you have a job, and hopefully one that is enjoyable, fulfilling and well-paying. But, really, any job will do. This budget is adjustable to any income level. So let’s take a look at ingredients of the formula.

Gross is all the money you earn before taxes are taken out. Of course, the first thing taken from your paycheck is taxes.

Tax is all federal and state income tax, social security and medicare withheld from your paycheck. You may not be happy about paying taxes, but here’s what the Bible says in Romans 13:5-7: “Therefore, it is necessary to submit to the authorities, not only because of possible punishment but also as a matter of conscience. This is also why you pay taxes, for the authorities are God's servants, who give their full time to governing. Give to everyone what you owe: If you owe taxes, pay taxes. . . .”

Tithe is 10% of your gross income (OR 10% of your net income and whatever tax refund you may get). The reason for tithing is so that you can support those who devote their time to ministering to you and help those who have no one else to help them. It also reminds you that God is your ultimate provider and teaches you to honor Him in everything. We are instructed in Proverbs 3:9-10, “Honor the LORD with your wealth, with the firstfruits of all your crops; then your barns will be filled to overflowing, and your vats will brim over with new wine.” So the first thing you should do in budgeting is to calculate your tithe. And the first thing you should do with your money every month is pay it.

You may be new to tithing, unsure of its value or unconvinced of its necessity. If so, it’s okay to start small. You may want to start with one percent or five percent, or however much you can. But once you get started you will likely find it easier and even exciting to increase your percentage (Try a one percent increase every 3-6 months until you get to ten percent). As for Cristina and I, we have committed to increase the percentage we give to our church by one percent every year. I am confident that when we honor God in this way, He will honor us in return.

Start this month! Sit down right now with your pay stub and calculate how much you earn every month. If you get paid a regular rate twice a month, multiply what you earn in one paycheck by 2 to get your monthly gross. If you get paid every two weeks, multiply what you earn in one paycheck by 26, then divide by 12 to figure your monthly gross. Once you know your gross, multiply that by .10 to calculate your tithe (for ten percent). If you decide to start with five percent, multiply your gross by .o5. Write you check today and take it to church with you next time you are there. Make your tithe check the first check you write every month!