Page 123 - The Prosperous Way _ (APRIL 2024 v3)
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A SIMPLE BUDGET PLAN
And what does it say in Proverbs 31:25: “She laughs at the days to come!
” Saving steadily and investing is key to building wealth for your
tomorrow.
Financial planners usually recommend setting aside at least 10% of
gross, but I take a somewhat different view. I use as my scriptural
reference the following passage in Genesis where Joseph interprets
Pharaoh's dream: “And now let Pharaoh...take a fifth of the harvest of
Egypt during the seven years of abundance…to be used during the
seven years of famine” (Genesis 41:29 & 34-36). Hence, it is my ultimate
goal to get to the point where I can set aside 20% (a fifth) of my
disposable income (after first deducting the tax and tithe) for my
tomorrow. This amount does not only cover savings for short term and
long-term goals but payments for health and life insurance, which are
also providing for tomorrow.
Most people’s response to this is, you have got to be kidding! I can’t save
anything at all, let alone 20% of my net after-tax and tithe. I can’t even
make it through to the next payday! Over the next few pages, we will
get a better understanding of how this seemingly unreachable goal can
be achieved over time. However, for now, let’s complete the final aspect
of our budget plan, which is income for Today.
TODAY — LIVING EXPENSES
So, we have allocated 20% of our income that remains after tax and tithe
to “Tomorrow.” The remaining 80% of it is available for your needs
“Today.” In your today, there are two main categories of expenses:
Housing (including your property tax and home insurance if you are a
homeowner) and General Living Expenses (like your telephone bill, or
car payment, grocery shopping, etc.). Here is the approach that I take to
these two categories of spending.
Housing
It is my observation (and regrettably my own personal experience) that
the single major reason why people cannot save is their housing
expenses are too high. People quite simply are house poor. The building
of castles has been the financial ruin of untold numbers of people, and
there is also no-where that the “pride of life” monster rears its head more
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