Today on MoneyLife

Today on MoneyLife, host Chuck Bentley tells listeners we must look to the Lord for help, inspiration, and wisdom.

God gives us the skills and ability to work. In the midst of turmoil, there are always opportunities. Chuck encourages listeners to pray and ask God how to have an offensive strategy right now. God can give new ideas and open up new opportunities if you ask Him.

It's also important to have a very strong defense for your financial house. Chuck says he will talk about defensive strategies you can use today.

After the break, Chuck talks about ways to cut discretionary spending. He says he divides a budget into fixed and variable expenses. Food is a variable expense. Food prices keep going up. Still, in most cases, the amount budgeted for groceries should not be more than 10% - 11% of your net spendable income. That's the money left to spend after giving your tithe and paying taxes.

Chuck says it's good to stockpile food; be intentional in looking for sales, buying in bulk and freezing. Go online and find out how stores price their goods, buy things out of season, and stock up to save money.

Buy store-brand items instead of brand-name goods, particularly frozen fruits and vegetables, spices, paper and plastic goods that are usually of the same quality as brand name items.

Chuck says you can also save money with generic medications instead of brand-name medicines, but be sure to consult with your doctor. Several retailers have a $4 generic prescription drug program.

You can also save money on utilities by adjusting the thermostat five degrees warmer or cooler, or turning it off completely when not needed. You can turn down the temperature on your water heater. Lowering your utility costs could give you more money to pay the mortgage and stay in your house.

Cable, Internet, and cell phone service are discretionary items. Chuck doesn’t have a TV, he gets his news from the Internet. If you’re squeezed, you can cut cable, go without the Internet, and use either a cell phone or land line, but not both.

Chuck and Dave continue talking about budget cutting ideas

After the break, Chuck recommend your auto expenses, including payment, gas, and maintenance, are 10-12% of your net spendable income. Many people are driving cars that are too expensive for them. If that's you, sell the vehicle and downsize to something you can purchase with cash. Cars lose value over time, so buy one you plan to drive a long time and keep it well maintained.

Insurance should be part of your financial plan. This includes health, life, disability, home and auto insurance. If you raise your deductibles, you can lower the cost of your insurance. However, you should only raise the deductible if you have the cash, in an emergency fund, to cover any uninsured losses.

Chuck tells listeners that when Chuck he was self-employed, he had catastrophic health insurance on each family member with a $5,000 deductible. They had to pay for doctor visits, but were covered if there was a hospitalization. Health savings accounts can also be used by some for medical expenses.

You may want to look at cutting gym and health club memberships. It's easy to find ways to exercise for free. Accountability is the key to an exercise program. Get a neighbor or family member to walk with you.

When you invest in your family, there are many benefits. To cut entertainment costs, try spending more time doing family activities at home.

After the final break, Chuck says God wants us to learn to be content. You don’t have to spend money to be content. Guard against becoming a lover of pleasure. Instead, be a lover of the things of God and not the things of this world.

Chuck applies a standard of what would he want to be caught doing if the Lord came back today. If there’s something you want to buy for you or your children, write it down and think about it for 30 days. Decide if you really want or need it. That will slow down spending and teach your children how to wait, how to delay gratification. Chuck refers to Philippians 4:11 and 2 Timothy 3:1-5.

Steps to Making a Budget

In making a budget, there are several steps, each requiring individual effort.

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Saving On the Food Budget

Every family enjoys saving money. If the family food budget is greater than recommended, there are steps that can be taken to reduce food costs.

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Reducing Automobile Expenses

Owning a car is necessary for most people in America today. Managing that car properly is part of being a good steward.

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Save Money On Insurance

When it’s used properly, insurance is a wise investment, especially if you’re protecting your family against potential financial devastation..

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Other Resources:

• ABCs of Money Package
• Career Direct
• God's Principles for Operating a Business
• Business By the Book
• Crown Mvelopes