Kylie and I know what it is to live on a budget and to have more month left over at the end of your money! We lived in Hong Kong for twelve years which is one of the most expensive cities in the world to live in. In Hong Kong you are paid monthly, so around about the 20th of each month we would come to the end of our money and have to find a way to make it to the 28th which was payday. We know the feeling of financial stress and it’s horrible. For years we lived with it, trying to raise a family of six in a 700 square foot (65 sqm) apartment that seemed to get smaller as the kids grew bigger. Rent and school fees alone took up 65% of our salary!

But that season in our life taught us some things. It taught us to live by faith and walk with God. It taught us to budget and to live within our means, and it taught us to be creative. We didn’t realise how much we learnt in Hong Kong until we came back to Australia where we are now reaping the benefits of the discipline we learnt. We are fortunate that in Australia our expenses are dramatically lower than in Hong Kong, and as we apply the same discipline to our budget now the results are fantastic. We have no debt, we are saving money and we are able to be generous while also living reasonably comfortably. We are earning less and yet we are saving more! And to be honest, we don’t actually earn that much! It’s all in the way you budget and more specifically how you prioritise your spending.

We have learnt that there is a very small factor in the way that you prioritise your budget that will determine whether you live under increasing debt or in abundance. This is something that has worked for us and we want to share it with you. There are lots of financial principles out there but we believe this is the most basic and foundational. It is by no means an exhaustive financial plan that takes into account all the nuances of your situation, but rather a simply strategy that can be applied to most situations. The answer is to literally flip your budget upside down, which I’ll explain in a moment.

But firstly, I believe that God wants to get you to a place where you are living in abundance so that you can use that abundance to bless others and do every good work God has called you to. God doesn’t want you to be under a mountain of debt, and struggling just to survive. If this is your situation, then I want to show you right now the way to get out of debt and into abundance. And it’s not just about giving, or making more money, it’s about stewarding every paycheck a better way.

And here it is:

There are 7 things that demand your money with every paycheck and it is vital how you prioritise each one. What should I pay first? What should I pay last? How do I order everything in between?

This is how you should steward each paycheck. Each one is listed in order of it’s priority:

  1. Tithe/give/sow
  2. Tax
  3. Debt
  4. Save
  5. Bills
  6. Necessities
  7. Luxuries

If you divide every paycheck up into these seven things and prioritise them in this order, you will eventually get out of debt and into abundance! This is how Kylie and I order our finances and it works! It may not work straight away but give it time and stick to it and it will eventually start working for you!

The first four things should be done before you even spend a cent on anything else!

Luxuries must absolutely always come last. This is essential! Only buy luxuries once you’ve taken care of all the other things and only if you have money left over. NEVER go into debt for luxuries!

Here is the problem though, people often put luxuries first and by the time they get to paying their debts and saving there is no money left, let alone having money to give!

In fact, a lot of people order their spending in the exact opposite way to which they should and their spending priority list ends up looking like this:

  1. Luxuries
  2. Necessities
  3. Bills
  4. Savings
  5. Debts
  6. Tax
  7. Tithe/give/sow

The problem when you do it this way is that there is usually no money left after number 3, which means there’s no chance of saving, paying debts or taxes and giving to God is just impossible! If giving is last on your list, and you do somehow manage to have a little bit left at this point, can you imagine how hard it will be to give it?

The solution is so simple. Flip your budget over!

  1. Give first. Put God first in your finances. This is the point where it’s the easiest to give but the longer you leave it the harder it gets.
  2. Tax. Put a little aside every paycheck into a separate account so it’s there at tax time.
  3. Debts. Put as much as you can towards them every week so you can get rid of them as quick as you can and not be getting killed by interest. Once your debts are cleared your savings are going to rocket.
  4. Save. Try to put some aside every paycheck, even a small amount. Over a few years this adds up. And then spend savings mostly on assets rather than liabilities. (Research the difference.)
  5. Bills. Pay your bills as soon as you can, and try to limit them so you can free up money.
  6. Necessities. Know the difference between a necessity and a luxury. The problem is people often convince themselves that luxuries are necessities. Food, transport, accommodation, medication, basic clothing are necessities. Going out to restaurants, buying new stuff, upgrading technology, vacations and entertainment are all luxuries we crave, not necessities we absolutely need.
  7. Luxuries. There’s nothing wrong with luxuries but just keep them last on the list.

Now I know this all may seem a bit over simplistic and perhaps not practical for you. But can I suggest you just try it? Print my list of priorities and use it when working out your weekly/monthly budget. Start dividing up your money according to this list, and most importantly be disciplined with those luxuries!

When you get to the place where you are getting out of debt and able to live more comfortably as well as putting God first in your finances and giving generously, you are going to feel so good about yourself! Financial stress will melt away and you will begin to take up a commanding position with your money to use it in seeing the gospel being preached, churches being established, the poor being fed and clothed and the lost coming to know Christ! This is the ultimate purpose for this little tool that God has entrusted to us called money. And I prophesy that you shall become a great steward of it!

Deuteronomy 8:18 (NKJV)

“And you shall remember the Lord your God, for it is He who gives you power to get wealth, that He may establish His covenant which He swore to your fathers, as it is this day.”

Here’s a final thought, if you lead a church, why not think about running the finances of the church according to these 7 priorities?

God bless

Ryan and Kylie Rufus.

P.S. Don’t forget to get your free copy of my booklet “The Clear Message of Grace” simply by subscribing to our great monthly newsletter. (SUBSCRIBE HERE)

Other articles you may find helpful:

Slay the monster of materialism and your financial situation will change.

Think, don’t worry about money!

Financial provision by grace: getting into God’s unlimited supply.

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