goal 3(e) - teach family members

Teach family members the principles of financial management. Involve them in creating a budget and setting family financial goals. Teach the principles of hard work, frugality, and saving. Stress the importance of obtaining as much education as possible. Abundant resources are available—from classes, to books, to other resources such as One for the Money: Guide to Family Finance. (All Is Safely Gathered In: Family Finances)

The example you set, the lessons you teach, and the work and budgeting that you do as a family will all have a lasting effect on the future decisions of your children. Make a goal today to involve your children in your financial decision making and budgeting process; model good money management; and take the time to teach them about money.

goal 3(d) - use a budget

Keep a record of your expenditures. Record and review monthly income and expenses. Determine how to reduce what you spend for nonessentials. Use this information to establish a family budget. Plan what you will give as Church donations, how much you will save, and what you will spend for food, housing, utilities, transportation, clothing, insurance, and so on. Discipline yourself to live within your budget plan. A budget worksheet is a useful tool to help you with your plan. (All Is Safely Gathered In: Family Finances)

There are so many ways to create a budget. It is a personal choice as to which method you will use. One recommendation that I want to make is that you manage your finances together if you are married. Communication is essential in staying within a budget. Be kind and respectful to each other as you discuss money. Try to understand the other's priorities, needs, and wants before you judge the other's thoughts on budgeting. By making decisions together, both of you will be committed to and more likely to stay within your budget.

I personally use a computer-based budget program. My husband and I discuss and agree to the budget allocations together. By keeping a financial reserve, we've been able to weather several unexpected expenses.

Do you have any budgeting tips that you'd like to share?

goal 3(c) - avoid debt

Spending less money than you make is essential to your financial security. Avoid debt, with the exception of buying a modest home or paying for education or other vital needs. Save money to purchase what you need. If you are in debt, pay it off as quickly as possible. (All Is Safely Gathered In: Family Finances)


Make a goal now to reduce and ultimately eliminate any consumer debt that you might have. Include in that goal a resolution to not incur any new debt. If you can't pay cash for it today, then don't buy it.

We've tried to take this counsel to heart and have avoided debt as much as possible. We do have a house payment and some educational debt, but haven't incurred any debt beyond that. We never put an expense on a credit card unless we can pay for it that month. We have a modest home, hand-me-down furniture and used cars, but also have the peace that come from a small financial reserve and only carrying minimal debt.


I enjoyed this post on the same topic at I Dare You To Eat It. She has some great suggestions on how to save money and reduce debt.

goal 3(a) - pay tithes and offerings

Successful family finances begin with the payment of an honest tithe and the giving of a generous fast offering. The Lord has promised to open the windows of heaven and pour out great blessings upon those who pay tithes and offerings faithfully (see Malachi 3:10). (All Is Safely Gathered In: Family Finances)

Paying tithes and offerings is a deeply personal and religious decision. But I would be remiss if I didn't include it as the foundation of financial preparedness. In the Old Testament in Malachi 3:10 it talks about a promise that comes to those who pay their tithes and offerings. Malachi records, "Bring ye all the tithes into the storehouse, that there may be meat in mine house, and prove me now herewith, saith the Lord of hosts, if I will not open you the windows of heaven, and pour you out a blessing, that there shall not be room enough to receive it."

I have personally experienced the opening of those windows of heaven. Throughout our lives, we have always been committed to paying our tithes and offerings. We've not been rich (though we truly ARE rich compared the most of the rest of the world), but we have always had everything we needed. Even in graduate school when money was very scarce and odd jobs provided little money, we always had enough to make it from month to month. I know that God was fulfilling that promise found in Malachi during those years. We honestly have more blessings than I can count and I attribute that in large part to paying our tithes and offerings.

I know that many of the readers of this blog are members of many different faiths. For The Church of Jesus Christ of Latter-Day Saints, a tithe constitutes 10% of your increase. A tenth is not just an arbitrary amount but comes from the Holy Bible (Genesis 28:22, Leviticus 27:32, Hebrews 7:22). Fast offerings are made by going without two meals (usually once each month)and then giving the cost-equivalent to help feed and clothe the poor.

goal 3(b) - financial reserve

Our current goal is creating a financial reserve.

Goal:
Save a little money from each paycheck.

Choose a savings vehicle. This can be a savings account, a regular bank account, or just a jar in your closet. Make sure that this account is low risk and liquid (which means that you can easily pull from it anytime without penalty). I personally wouldn't count money saved in retirement accounts, pensions or stocks. It's too hard to get immediate cash from these sources.

Start this week to save money in that "account." Are things really tight? Start with $10 a month. Even tighter? Then save $1 a month. The idea is to make saving money a habit. And don't touch that money unless you're starving! :o) This reserve is for emergencies only. A dress that is on sale, the need to pay your kids an allowance, or piano lessons do not constitute an emergency. The time to turn to this money is when you are out of work and have run out of money (or other similar emergencies such as medical etc.). Make it a goal to leave that money alone. Increase the amount as your income allows.

I personally use a bank account and have an automatic transfer set up. Each time we get paid, a small amount is automatically transfered into my emergency savings account. I've been amazed how quickly money has accumulated in that account. If this sounds like something that would work for you, then call or get online and set up that automatic transfer today.

From All Is Safely Gathered In: Home Storage:
Establish a financial reserve by saving a little money each week and gradually increasing it to a reasonable amount.

From All is Safely Gathered In: Family Finances:
Gradually build a financial reserve, and use it for emergencies only. If you save a little money regularly, you will be surprised how much accumulates over time.

And From President Gordon B. Hinckley:
“Set your houses in order. If you have paid your debts, if you have a reserve, even though it be small, then should storms howl about your head, you will have shelter for your wives and children and peace in your hearts” (Ensign, Nov. 1998, 54).

family finances

I know that many of you are still working on your three-month supply and/or water supply. Keep it up! Don't stop because we are shifting gears. Acquiring these items takes time. Keep your lists in hand and purchase things as you are financially able.

For the next while, our goals are going to center around financial preparedness. Don't worry, this is not going to be an elaborate or difficult-to-understand tutorial on financial terms or economics. Instead, we're going to focus on one main goal and five easy anyone-can-do suggestions to help us be financial prepared. These come from a pamphlet released in 2007 by The Church of Jesus Christ of Latter-Day Saints, titled All is Safely Gathered In: Family Finances. These goals make up a sound financial preparedness plan that are beneficial regardless of your religion.

Here is the message found within:

Dear Brothers and Sisters:

Latter-day Saints have been counseled for many years to prepare for adversity by having a little money set aside. Doing so adds immeasurably to security and well-being. Every family has a responsibility to provide for its own needs to the extent possible.

We encourage you wherever you may live in the world to prepare for adversity by looking to the condition of your finances. We urge you to be modest in your expenditures; discipline yourselves in your purchases to avoid debt. Pay off debt as quickly as you can, and free yourselves from this bondage. Save a little money regularly to gradually build a financial reserve.

If you have paid your debts and have a financial reserve, even though it be small, you and your family will feel more secure and enjoy greater peace in your hearts.

May the Lord bless you in your family financial efforts.
The First Presidency

I love the promises at the end of this message. I have personally experienced the peace that comes from financial preparedness. Hopefully as we set goals in regards to financial preparedness, you'll be able to find that personal peace as well.