Three Practices that Lead to Financial Peace
By: Josh Roberie
Your church finances do not have to be a source of stress in your life. With some simple practices and a little discipline, you can remove most of the worry related to your church finances.
Too often, we avoid the areas that make us uncomfortable or cause us stress. If you do this with money, the problem only multiplies. Avoiding your ministry's financial health will increase your pressure when you finally have to address a money issue that can no longer be avoided. Follow these guidelines to help you establish best practices for your ministry.
1. Make a budget (and stick to it).
Could you imagine driving a car without a fuel gauge? What if you were about to run out of gas on your way to pick up your kids from an event but had no idea? Can you picture the stress this would cause? Your fuel gauge gives you peace and helps you plan ahead, so you do not end up stuck on the side of the road.
It is the same with a church budget. I am guessing you have a general budget for your ministry. But is it something that gets regular attention? Do you consult it in a way that allows you to plan, and that will cause you to say "no" because the budget gauge is warning you to make an adjustment?
Your budget should be something that guides your spending the same way a fuel gauge determines your driving. It is not something you look at only when it cannot be avoided. You check it every time you drive. If you want your ministry to stay on the road, then make sure you update your budget and regularly use it for making the best decisions for your church.
2. Build Margin into your budget.
Create margin when planning for future budgets. Instead of expecting your giving to increase or stay the same, plan for reduced spending. That way, if your church exceeds or maintains previous giving, you will be set up for success for saving and spending. This extra pad is not about being negative. It is about preserving peace and protecting your ability to lead without pressure. A general rule of thumb is to make budgets 80% of the previous year’s expenses.
Imagine having extra money to put into your reserves because you planned ahead? What would it be like to enter into an economic slowdown that may impact your giving, knowing that you are prepared and all your current ministries can proceed as usual? Building margin is your best way of investing financial peace into the future of your church.
3. Pay your expenses right away.
When you pay your bills right away, you not only relieve the anxiety of having an unpaid debt, you also reduce the opportunity for mistakes in your budgets and make a good witness for the Church. Delaying your bills can cause you unnecessary late fees. It also increases the chance that the expense gets overlooked or misplaced. Paying bills late puts a bad taste in the month of other local businesses, which will hurt your church's reputation. You want people to be happy to do witness with you. You never know how you can influence people through your disciplined financial habits.
Knowing your expenses are covered helps you know what kind of room you have for the rest of the month. Whether it is less room or not, you can be at peace because you know what you are dealing with moving forward without the guesswork and stress of having an unnecessary debt weighing over you and your church.
Deka Can Help
Deka has many tools that will not only help you budget better but will make dealing with your church finances much easier as a whole. Use this link to schedule a free coaching call with one of our team members.
Josh is a ministry leader, communicator, and creative who helps train and coach church planters at the Association of Related Churches (ARC). He has been a contributor to many ministry publications, including Relevant Magazine. You can stay connected to Josh through his blog JoshRoberie.com and on Social Media at @JoshRoberie.