Budgeting with a low and unpredictable income? Go Figure – Part 1 of 2
“Are you kidding? How do you expect me to budget when I don’t know my income? Some months, my cash flow is zero. How do I budget?”
I hear these comments often. Certainly, many people’s income is unpredictable. Various corporations, ministries, churches also have some cash flow. Should they forget about budgets, spend only in periods when they receive funds, not spend when they don’t receive funds? Would this be good stewardship? I do not believe it.
Certain costs are fixed for a while and, like a freight train, they keep coming your way. If you have a mortgage, it doesn’t stop when you have no income. your challenge? Face reality, learn to manage unpredictable cash flows, and adjust your lifestyle to finance necessary expenses in an orderly manner. That is what Pharaoh commissioned Joseph to do in Egypt: balance the grain supply for 14 years, so that Egypt would have grain during seven years of famine (Genesis 41).
From this event, we can learn at least three practical lessons to apply to our circumstances. First, accept the reality of your circumstance. Second, your circumstance is unique to you, and third, plan for reality, until God changes it.
Accept the reality of your circumstance
Pharaoh and Joseph accepted their circumstance: they accepted that there would be a feast followed by a famine.
If you gave your life to the Messiah, He has promised to provide for your basic needs, when you seek first His Kingdom and His justice. In fact, six times in Matthew 6:24-34, He assures you not to worry, but do you? Don’t you think he will do what he says? Alternatively, do you think you have not adjusted your lifestyle to fit his requirements to provide for you?
When you think your prayers are not being answered, look at your lifestyle to see if you need to adjust it according to His path. Remember, He will answer his prayers according to his character, his values, his way, not yours!
Your circumstance is unique to you
Often, we try to tailor a solution to someone followed by a problem similar to ours. But it doesn’t work because we don’t look holistically at the other person’s situation. Although our friend may have a low and unpredictable income, she may be starting out on a solid financial footing. Her debt load, although high, could be manageable with the help of her parents. Our debt load is similar, but our financial foundation is shaky and we don’t have any friends or relatives to help out temporarily! So going our friend’s way to renegotiate the debt, lengthen the maturity of the debt and reduce the payments, could be pointless and costly.
In part two, we’ll discuss the third lesson: how to plan for the reality of low and erratic income.
Copyright (c) 2011, Michel A. Bell