How Much for Rent?
How much should you spend for rent? What should the average family's grocery bill be? Let's assume you are the average American family of four. Your two children play an important part in your planning. The chances are you make an average salary of approximately $100.00 per week or nearly $5,000.00 per year. However, many who live in rural areas don't make this much. There are widows and pensioners who only have small incomes. No matter how much less or more than this average you make, it still is necessary to handle your money wisely to use it to the maximum.
The rule of thumb is not to spend more than 25% of your monthly income — after taxes and tithes are removed — for RENT. Your total housing expense — rent or mortgage payment, utilities and repairs should not be over this percentage. This is a major item. If you are older and have already purchased your home, this will help greatly. Most must reconcile themselves to this high rent and adjust wherever they can. The place to adjust is not from tithes — it is from living expense which is to follow.
For Groceries?
When you have a place to live, groceries and foodstuffs are the next most important items. The average here is to spend about 20% of the monthly income. Of course this is up to a point — and larger salaries can apportion a greater percent to other needs. Your grocery bill should include the ordinary household items purchased at the grocery store. Those in farming communities will naturally have a much lower food bill than those in metropolitan areas. So learn what is best for you. Families with numerous children must see that their budget allows for an adequate, wholesome diet. Food is not the place to skimp. Cut down elsewhere in your wants.
If you are careful, watch for specials, learn to eat more fruits and vegetables than meat, you will cut down enormously. Many are totally unaware of the cost of certain items. Often wives are in too big a hurry to notice prices. In this department the wife plays a very important part. A woman who does not know how to buy or prepare food is a handicap to the family. But a diligent and wise woman is prized above rubies (Prov. 31:10). If you will read Prov. 31 you will see how a woman can save in the family budgeting. "She riseth also while it is yet night, and giveth meat to her household, and a portion to her maidens" (v. 15), ". . . with the fruit of her hands she planteth a vineyard" (v. 16), "She perceiveth that her merchandise is good" (v. 18), "She looketh well to the ways of her household, and eateth not the bread of idleness" (v. 27), "Give her of the fruit of her hands; and let her own works praise her in the gates" (v. 31). If care is used along with wisdom the bills can be cut and the family can actually eat better.
From now on there are many minor expenses. It is in these that a family can become bogged down and have financial worry and grief. Automobile insurance, expense to travel for church services, if you live in a church area, expense for travel to work, and repairs, become the next most important. Without transportation you perhaps will be without a means to earn a living. Selecting an automobile you can afford and keeping it up are very important.
Insurance for your car and any life insurance you may carry should be kept within your range. In some cases people go in the hole on insurance they do not even need. In all cases carry at least the minimum insurance required by the State. Some, who have neglected to carry insurance find after an accident that they are facing economic ruin. Remember, to buy auto insurance is the best way to save money! If you think accidents cannot happen, read the article on "Accidents Do Happen!" in a past issue of the Good News. Never let this get out of the proportion of about 5%.
Clothing will be a major item if you have growing children. Here you must buy what you can afford — looking for sales and specials, but without compromising on quality! This should also be about 5% of the monthly income. Perhaps other incidentals can be purchased at random when you can cut corners and save. All-in-all, there is not much more that can be done on the average salary. Certain sacrifices must be made. Be willing to go without until you have the financial means. Keep in mind, also, that these percentages may vary greatly according to your needs. It may not cost nearly as much for you to provide transportation in some areas as in others. But juggle them to fit your entire income. What each of us must do is calculate how we can arrive at a means of balancing our budgets to fit our needs.
Don't Live Beyond Your Means
Part of the problem is that many people want to live above and beyond their means and invariably find themselves in trouble! Many purchases are bought in haste and regret follows when payments cannot be made. As stated earlier, learn to be satisfied with what you have — improve as you learn, and with care! "Keeping up with the Joneses" is an old adage that has a lot of truth in it. For too often families buy something out of covetousness, or jealousy for what someone else has. Even people in God's Church can be guilty of this. When one brother is able to buy a new set of furniture for the living room, another brother, feels he has to keep up or people will not want to come to his house.
This is a major cause for financial woe.
One family found itself in trouble by building up large charge accounts — always hoping to pay for it later. They bought expensive clothing and household items. The advertisement about "only $.50 a day" looked cheap. But after several such purchases he found himself obligated for over $100.00 per month for the next three years and more. He couldn't make payments and lost everything plus his original investment of quite a sum. This brings up a question many have asked: "Should we have charge accounts?" Or, "what about credit cards?"
An ordinary charge account can be a good thing IF it is used properly — if it is a convenience and not a handicap. NOT all people can handle them because some will invariably overcharge. Others can keep them within their budget and are able to purchase things they would have had to wait several months for. You must judge yourself. It is better, in many cases, not to use them. To pay cash is far better.
In making long term or monthly payments you will usually have to pay at least 10% interest — (don't let the signs fool you on low interest) — it is a large amount in the long run. However, some of us could not purchase these items if it were not for charge accounts — learn to use them properly and as little as possible.
Naturally a new home will have to be financed in most cases. If you ever will be buying a home it is accepted generally to pay about three times your annual income for the home. So if you are the average American making $5000 a year you should purchase a home for about $15,000 — financing it for 20 or 25 years will bring your payments including interest and insurance to about $100 a month in most cases. But many try to move into a $20,000 home and find they lose their entire investment. So use caution in purchasing a new home and be certain you can afford the payments according to your salary.
Also, each family should be laying aside a small sum for funeral expenses. Perhaps the cheapest way is to purchase burial insurance if you have first carefully examined it.
After all these necessities, you have still not cared for everything. One major item has been left till the last for a specific reason. If we faithfully use wisdom and discretion and OBEDIENTLY use our money as God commands, He has promised to bless us even more. And according to these blessings we give God special thanks as our ability allows.
God indicts this nation for ROBBING Him. When asked how we have robbed Him, God answers, "IN TITHES AND OFFERINGS" (Mal. 3:8). And the Apostle Paul added in II Cor. 9:6-9, "Mark this: he who sows sparingly will reap sparingly, and he who sows GENEROUSLY will reap a generous harvest. Everyone is to give what he has made up his mind to give; there is to be no grudging or compulsion about it, for GOD LOVES THE GIVER WHO GIVES CHEERFULLY. God is able to bless you with ample means, so that you may always have quite enough for any emergency of your own and ample besides for any kind act to others . . ." (Moffat Translation). God has granted us abundance — even if it is a small amount — and we are commanded to express our appreciation to him in special offerings.
Further, we can have a great part in the very work of God by pledging to the property fund — this is equally important in your handling of finances. There can be no greater blessing than you have in being a part of the final end-time WORK OF JESUS CHRIST. Although these may be last mentioned, they are by no means least important. Do your best to extend wherever possible to make your part here even greater!
These are principles to guide you in directing your income more efficiently. These are not musts in every case. There are many exceptions to rules of budgeting. The main thing is for you to learn where you can cut or save — to be aware of how you are spending what GOD HAS GIVEN YOU! Learn to manage God's way should be a motto in your life.
Consider now why you want your financial worries solved. Is it so you can afford more and better possessions in this world? Or is it so you can have a greater, more active part in God's Work? James said, "Ye ask, and receive not, because ye ask amiss, that YE MAY CONSUME IT UPON YOUR LUSTS" (James 4:3). If you have wanted more money out of a lust for material wealth, if you have vanity and only want to keep up with the neighbors, if you are jealous of another's prosperity, the chances are God will never add an increase to you. YOU MUST LEARN THE LESSON of TOTAL SELFLESSNESS and have an attitude of GIVING! Then God will make it possible for you to have the active, PROSPEROUS life that leads to satisfaction in serving! You will be a better manager and God WILL increase your income.