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“The generous will prosper; those who refresh others will themselves be refreshed.” – Proverbs 11:25 NLT

As we encourage generosity, we must also be diligent in our stewardship. Two areas always sensitive in developing an accurate budget are stabilizing expenses and growing our reserves. There is a proper balance to both.

Your church’s expenses can be stabilized by deciding how much your income should be spent on each program and activity. The Bible gives us directions on where we should spend money. The Bible asks us to fund missionary work, pay our church leaders and ministry, and give to the poor.

Several articles give specific percentages on where your church should spend money. Most of these articles agree that the most significant share should cover salaries and wages for your ministry and staff. After that, the percentage largely depends on your church’s specific expenses.

For your church to continue paying your bills on time, a certain percentage of your income must pay off debt and save for emergencies. Unexpected costs will arise, and being prepared for these situations with an emergency fund allows your church to use all funds responsibly.

Emergency funds are not the only area of savings your church should include in your budget. Like any church, you want to look to your future and the potential for expansion.

To ensure that possibility, you should purposely set aside a reserve fund. When funding your reserves, you must cover at least one pay period for your staff. Remember, your accounts should be at most the amount of your budget for two years.

Journeying Together,

John

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