Dec. 27: Organizing Your Finances

Do you find it hard to save more and spend less money?  If so, you’re not alone, notes Carolyn T. Geer in her “Investing Basics” column in the Wall Street Journal.  One reason we need to set goals every year to save more and borrow less, she says, is that “we never seem to make any headway with them.”

Geer cites one expert’s advice that “budgets have a major design flaw.  Because of their emphasis on self-denial, we are not motivated to follow through with them, so we are constantly failing.  The solution?  Think buckets, not budgets.”

“Buckets” refers to specific amounts of money that you set aside for concrete goals, and to which you contribute on a regular basis.  Instead of just saving money in general, you’re putting money away for a trip, a TV, or a college education.  With these concrete goals in mind, you’ll also be less likely to borrow from the fund than you would from a general savings account.

Resolving to be prudent with precious resources makes a lot of sense—and possibly cents.

Honor the Lord with your substance and with the first fruits of all your produce.  (Proverbs 3:9)

Father, teach us to be good stewards of all that is valuable.