Is Your Problem Fundraising or Fund Management?
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Some mission-workers have raised their full budget but still struggle to make ends meet. Money always seems “tight.” And they don’t save month by month.
They say, “I need to increase my budget.” But will more fundraising solve the problem?
Not necessarily. Even if you are a well-funded missionary, ask yourself two questions to relieve financial pressure:
Am I/we living on a serious budget that stops me/us going over the limit?
Do I/we set savings aside at the beginning of the month? Or after the bills are paid?
I have made these stewardship mistakes. Alma and I were “up to budget,” but our monthly expenses always seemed to blow past our fully allowed salary. Growing up on farms in Iowa, we were frugal—not wild spenders. “We need more money,” I said.
But “budget” was in our minds only—not on paper. It had no teeth. Every expense seemed legit, and we never said no. Trying to save after we paid the bills didn’t work! “Next month!”
Our problem was not fundraising, but fund management.
Here are two decisions we made years ago that changed everything.
On the day our paycheck arrived we boldly transferred 10% to an Emergency Savings Account. I thought we would starve before the next paycheck but living on 10% less forced us to re-think “might-as-wells.”
We launched the envelope budgeting system. The day our paycheck arrived (after transferring 10% to saving) we put cash into envelopes marked:
a. Groceries and paper goods
b. Household
c. Operating/Miscellaneous
d. Clothing
e. Kids’ allowances
f. Entertainment—meals out, fun
g. Scott spending—small amount, no questions asked
h. Alma spending—small amount, no questions asked
It will take a couple months to determine proper envelope amounts. No more than eight categories, to keep it simple. US studies show that using cash equates to spending 19% less than using credit cards.
For example: You need a new shirt and the clothing envelope has only $5 remaining? This means God is giving you permission to buy a $5 shirt! And no, you can’t rob other envelopes! When the envelope is empty, stop spending in that category! God has not ordained your desire for a $30 shirt! 🙂 Wait till next month.
People say the envelope system is old-fashioned. Agreed! But… It works! And it doesn’t require bookkeeping. When the entertainment envelope is empty—have a family game night at home! Empty envelopes are stop-signs you must not blow past.
Two cautions:
Being frugal alone won’t relieve tight cash flow. You need a budget with teeth!
“I know where every dollar goes.” Good, but that is not budgeting. You need stop signs!
But is it biblical to save and live on a budget? Yes! Proverbs 21:20 instructs us:
“ There is precious treasure and oil in the dwelling of the wise, but a foolish man swallows it up.”
How does the wise man end up with treasure and oil? Because he doesn’t “swallow it up!” He doesn’t spend it as soon as he gets it.
Before you raise your budget and launch more fundraising, save by Paying Yourself First and put a budget on paper.
NEXT STEPS:
For Scriptural insights on saving and budgeting, watch these two videos:
For good budgeting systems go to www.ramsaysolutions.com. Ramsay research shows that serious budgeters spend 10% less the first month by deleting “mystery spending.”
