A Formula for Financial Freedom (4 of 6)

Tally is the total monthly amount of money paid toward bills and expenses. This is where all our money disappears. As Proverbs 23:5 so aptly observes, “Cast but a glance at riches, and they are gone, for they will surely sprout wings and fly off to the sky like an eagle.” Again in Proverbs 22:7, we are told that, “the borrower is slave to the lender.” We have to pay our bills. But here’s the beauty of this budget. All you have to do is make minimum payments and let your DIPS accelerate your financial freedom.

This is also where you have to do a little acting. If you pretend to be rich now, and live like you can afford anything, then you will soon end up with nothing. But if you pretend to be poor now, you will eventually be able to afford anything you need (see Proverbs 13:7). So ask yourself some important questions. What unnecessary payments are you making? Where can you cut back? Learn to discern the difference between a need and a desire. For instance, you need clothes; you do not need designer brands. You need food; you do not need to frequent your favorite steak house.

The hardest part is learning discipline. For example, in order to keep our spending under control, Cristina and I give ourselves a cash allowance to spend on eating out and entertainment every two weeks. Once that cash is spent, we cannot withdraw any more money. And we absolutely may not use a debit or credit card. This has helped us to rein in our impulse spending and splurging.

Treat is the money you can spend for personal enjoyment. That is, if you have any money left over after paying God (tithe), your future (thrift) and your bills (tally), feel free to spend a little on yourself. You don’t have to feel guilty because God gives you money to enjoy. But remember any money you spend on yourself cannot be used to help others, which is your goal.

Generosity is the amount of money you have left over to be a blessing to others. You may use this for gifts for birthdays, holidays, weddings or special occasions. Or you can give to ministries that bless you (besides your church), missionaries, or other organizations you believe in. In particular, I suggest you should consider the poor (see Proverbs 14:31; 21:13; 19:17; 22:9).

When it comes down to it, budgeting takes discipline. And this may or may not be the best budget for you. You may have to tweak it here and there. But I believe everyone would benefit by considering the two G’s, the five T’s and the DIPS.

The main thing is to choose a budget and use it! Decide where every dollar you make will go before the month begins. And follow your plan. You may not get it down the first month, the second month, or even the third month. But keep at it and you will experience the pleasant peace that comes with financial freedom.

“No discipline seems pleasant at the time, but painful. Later on, however, it produces a harvest of righteousness and peace for those who have been trained by it.” - Hebrews 12:11

So, wherever you are on your financial journey, take the next step: budget. Do it this week!

Tomorrow, I will post a basic outline that recaps the last few posts in a quick and simple format.