Last Saturday, I performed a wedding ceremony for the third time in as many weeks. This is, of course, a popular time of year for couples to tie the knot.
Prior to each service, I spend some time with each couple to discuss, not just the wedding service itself, but marriage. I’ve found that most of the time they spend months busying themselves with wedding plans but they don’t take time to think about marriage. One of my jobs as the performing minister is not just to lead the ceremony but also to lead them into the new territory called marriage.
After discussing wedding details, I like to talk about what they are going to do when the honeymoon is over. How will they handle everyday life? How will they get along? How will they handle conflict, stress, and disagreements?
One of the many things that I discuss with the bride and groom is personal finances. How will they handle their money? Do they have a budget? Will they have separate accounts or a joint account? We get into these things and I advise them as needed.
The main thing that I want couples to know about finances at the end of our premarital counseling sessions is to let the 10-10-80 plan be their base.
The 10-10-80 plan is simple and doable – especially if couples (or singles) begin their life together with this plan in place. The plan:
10% – give away
10% – save
80% – living expenses
Or put another way:
Pay God first
Pay yourself second
Pay everyone else third
As a follower of Christ, I believe that the first 10% should be given to my local church. Therefore, I encourage everyone to do so. Interestingly, I’ve read books and articles over the years by many financial planners who claim no religious ties to give 10% to charity. They seem to understand the value of giving. (Sounds like a future blog post!)
Learning to live on 80% of your income isn’t always easy. It will call for self-control and the ability to say “No” to things you want but don’t need. It may mean living in a smaller home, driving an older car, eating out less, and fewer trips to the mall.
But peace of mind is worth a lot more than a piece of real estate. Being content with what you have is a fine quality to possess over being stressed about how you’re going to make next month’s car payment.
Once you learn to live by the 10-10-80 plan, don’t stop there. Increase your giving and savings by a percentage point or two each year. What if you increased those two categories by one percentage point each year? After ten years, you would be living on 60% of your income, saving 20%, and giving away 20%!
The giving part is what excites me! Who do you give to? Where would you give your money if you lived according to this plan? Who could you bless? How could your money make a difference in people’s lives?
It may seem impossible to you now but it can be done.
Do you have a similar plan? How would your life change if you lived by the 10-10-80 plan?
If you want more details on how to be smart with your money, check out these two blogs:
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