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Key Reference: Col. 1: 28; 2 Tim. 3: 16 – 17.
- The lesson is aimed at encouraging the Christians to engage on meaningful ventures to raise income for the sustenance of life and for the service in the kingdom of Christ (Church)
- It will help Christians on how to manage their limited income to avoid frivolous spending.
- It will also help the church leaders on priority spending of the church fund.
- The lesson will help us understand the need for budgeting as a tool for management of finance.
- We shall also embrace the need for saving.
Financial management is a major aspect of consideration both to individuals and organizations, especially in the world of nowadays in which money is so scarce.
Without proper management of finance many businesses have folded up, organisations have collapsed, homes have been broken up and churches have failed in the discharge of the assigned mission given her by our Lord Jesus Christ.
In this lesson, we all know that a Christian is one who have accepted the call of Christ through the gospel and immersed in water of baptism, and become a new creature in Christ. He is a bought person by the blood of Jesus Christ – Acts 20: 28. He is Christ-like in nature and filled with the wisdom of Christ through daily teachings of the word of God.
- Finance means relating to or involving money.
- Management: This is the process or act of controlling and organizing something. When it relates to finance, it is a process or act of controlling money both income and expenditure. Since nobody can manage what is not available, we will start on how to raise income/finance.
- What is income?
- What is money?
- What are the sources of income/money
- Should the Christian engage in all sources of income? If NO, what are the good sources of raising income/money?
- Income is money received, especially on a regular basis, for work or through investments.
- Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular country or socio-economic context.
- Sources of income/money: There are so many sources of income. Time and scope will not allow us to go into details of explanation than to mention few legitimate ones.
- Earned Income – is the money that you earn by doing something or by spending your time, e.g. the money that you make in your job, the salary you get by working for someone else.
- Profit Income – money you earn by selling something for more than it costs you to make, e.g. businesses selling their goods at a profit, whether at the retail or wholesale level, as a distributor or manufacturer.
- Interest Income – money you get as a result of lending your money to someone else to use, e.g. putting it in the bank, lending it to government in the form of buying treasury bills, etc.
- Dividend Income – money that you get as a return on shares of a company you own.
- Rental Income – this is the money that you get as a result of renting out an asset that you have, like a house, or building.
- Capital Gains – this is the money that you get as a result of increase in value of an asset you own. For example, when you buy shares at N0.50k and sells them at N1.00k – the N0.50k is capital gains.
- Royalty Income – This is the money you get as a result of letting someone use your products, ideas or processes. They make all the revenues, they do all the hard work and you get a small percentage of whatever they earn.
- The Bible enjoins Christians to engage in meaningful ventures.
- 4:28 “Let him that stole steal no more; but rather let him labour, working with his hands. The thing which is good, that he may have to give to him that needeth”
- 2 Thess. 3:6-14 (working for a living is enjoined by the Apostles).
- Titus 3:8 “This is a faithful saying, and these things I will that thou affirm constantly (confidently) that they which have believed in God might be careful to maintain good works. These things are good and profitable unto them.
BUDGETING AS A TOOL FOR MANAGING INCOME
- What is Budgeting?
- Can an individual make budget on his income and expenditure as well as an organization?
- What are the benefits of budgeting?
Budgeting is a process of creating a plan to spend your money. This spending plan is called a budget. Creating this spending plan allows you to determine in advance whether you will have enough money to do the things you need to do or would have to do.
Budgeting is simply balancing your expenses with your income. If you don’t have enough money to do everything you would have wanted to do, then you can use this planning process to prioritize your spending and focus your money on the things that are more important to you.
WHY IS BUDGETING SO IMPORTANT?
Since budgeting allows you to create a spending plan for your money, it ensures that you will always have enough money for the things you need and the things that are important to you. Following a budget or spending plan will also keep you currently in debt.
Another advantage of budgeting your money is helping you avoid spending on unnecessary fees, services, and products that are cutting into your financial goals. If you have a fixed income, budgeting will allow you to make ends meet much easier each month without all the stress.
Before we go on, let’s look at the following items on our expenditure list and prioritize on them.
- Buying of new clothes
- Buying of car
- Building of a house
- Going to fast food joints
- School fees / other requirements of schools
- House rent
- Entertainment of guest/visitors
- Spending on functions
- Church weekly collections
- Transportation to work place
- Taking care of our aged parents
- Electricity bills
- Car maintenance
- Water bills
- Buying of marriage uniforms/gifts
- Benevolence to those in needs
- The preacher’s support
With our limited income, how do we go about solving the above demands.
If you don’t budget, you will ever be broke.
- Budgeting truly shows you how to allocate your money. It provides you with detailed understanding of what you can afford to spend your money on and knowing your financial limitations. Budgeting will save you the grief of overspending and possibly cause you to climb into more debt, something many of us struggle with.
- Budgeting does not stop you from enjoying things you find happiness from in life. It actually does the opposite and allows you the freedom of doing more of the things you love.
- Budgeting provides you 100% control over your income.
- Let’s you track your financial goals.
- Budgeting will open your eyes.
- Will help organize your spending
- Will help create a cushion for unexpected expenses.
- Budgeting makes talking about finances much easier. Finances are the most common argument between married couples. One of the biggest benefits of budgeting is reducing the overall stress surrounding the “money conversations”.
- Having a budget let’s you save a “Safety Net”.
When on issue arises in life like unemployment, you will be ready. I hope thishappens to most people, but budgeting will allow you to be prepared if it does.
Having a Safety Net will keep you afloat if your income stops coming in. The saying goes “have enough in your safety net to lasting to six months with no income”.
- Allows you to pay Down Debt quickly
- Budgeting helps you invest
- Last, but not the least, it allows you to live life better.
Controlling your money will have a huge positive on your life.
James 1:5 “If any of you lack wisdom, let him ask God; that giveth to all men liberally, and unbraideth not; and it shall be given him.”
SAVING AS AN IMPORTANT ASPECT OF FINANCIAL MANAGEMENT
Many Christians don’t give thought to saving part of their income. Saving plays a greater role in prudent management of income, whether small or big. After hearing this lecture, every Christian should try as much as possible to be saving part of their income because of the benefits it has in the future life of the individual.
Nature has taught us the importance of saving in many aspects of life.
What is saving?
In consideration of our lesson, it is income not spent or deferred consumption. It refers to money put aside for future use rather than spending it immediately.
WHY SAVING IS IMPORTANT
We save basically because we can’t predict the future.
Saving money can help you financially secure and provide a safety net in case of an emergency.
Here are few reasons why we save.
- Emergency cushion- this could be any number of things: buying of land, building project, out-out-pocket medical expenses, or sudden loss of income. You will need money set aside for these emergencies to avoid going into debt to pay for your necessities.
- Retirement: if ypu intend to retire someday, you will probably need savings and/or investments to take the place of the income you will no longer get from your job.
- Education: the cost for private and public education are rising every year and its getting tougher to meet these demands. Savings helps finance further education.
- Savings helps you to become financially independent. Financial independence is not the same as being rich. But not having to depend on receiving a certain little money from people.
- Get out of debt – if you ever want to get out of debt, you have to have some money saved.
- Unforeseen expenses
- To have a good life
- Helps to finance vacations
- Helps to finance the down payment for mortgages
LESSONS FROM THE ANTS Prov. 6: 6 – 8
The Ants teach us lessons about industry and foresight. It labours diligently and voluntarily.
The Ants work and feed itself every day, but most importantly it doesn’t consume all its works on daily basis – it saves some for the adverse season – Vs 8
The important of saving money cannot be overemphasize. Start saving as little as you can and see how much successful your life will be.
“Don’t save what is left after spending, but spend what is left after saving”
Money is not easy to get especially through an honest way, therefore we have to acquire more knowledge to properly manage it.
- Always show prudent in the way you spend your money.
- Avoid money spending competition.
- Avoid frivolous spending.
- Always check your balance before going into the next spending.
- Don’t like borrowing because those who like borrowing dislike paying back.
- Don’t spend to please anybody.
- Check before you spend.
- Have a budget and use the budget.
- Give yourself a limit for unbudgeted spending.
A critical part of your budget is the net income or the amount of money left after you subtract your expenses from your income. If you have any money left over, you can use it for fun and entertainment, but only up to a certain amount. You can’t go crazy with this money, especially if its not so much to last for the entire month. Before you make any big purchases, make sure it won’t interfere with anything else you have planned.
- Track your spending: small purchases here and these add up quickly, and before you know it, you’ve overspent your budget.
- Contribute to savings regularly, no matter how small it might be.
- Try to create extra ways of making additional income especially when you are full of strength and not when you retired and tired.
“WISDOM IS THE PRINCIPLE THING: THEREFORE GET WISDOM: AND WITH ALL THE GETTING GET UNDERSTANDING” – Prov. 4: 7
Thanks and God bless us.
UYO TOWN CHURCH OF CHRIST, 20 PAUL BASSEY STREET, UYO
SUNDAY SCHOOL FOR MARCH 2019 BY BRO. M. M. AKPAN (MIN.)