This rejection prompts or allows many dedicated Christ followers to make poor decisions when it comes to planning for retirement age. The biggest, and most common, is the decision to not prioritize retirement savings. Even if a person has no plans to stop working, there will likely come a time when the amount of income a person can generate will be less than their expenses. Balanced retirement planning isn’t centered on long ocean cruises or playing golf on exclusive greens. Rather, it considers higher medical costs, increases in food and other living expenses due to inflation, and costs associated with visiting family or spending time with grandchildren.

The Bible does indeed honor old age. Proverbs 16:31 says, “Gray hair is a crown of splendor; it is attained in the way of righteousness.” Numbers chapter 8 provides guidance for the Levites and in verses 24-26, there are specific rules for a phased-down ministry for those Levites who are over 50 years of age.

The problem, for some, is being able to save for retirement while living paycheck-to-paycheck or while being dependent on the support of others which may fluctuate from month-to-month. A response to this scenario should vary based on family circumstances. Do you have others that you must support while in retirement age? Living “on faith” without a steady income may seem like a noble prospect, but God clearly commands that we take care of ourselves (2 Thessalonians 3:10) and our families (1 Timothy 5:8). Perhaps an adjustment to a support raising goal must be made to account for retirement savings or perhaps the addition of a small side income of some kind.

Small steps can lead to larger results. If you are not currently saving for retirement age, start today with $5 a week. Work up to $50 per month and then $100. Take it slow. Something is better than nothing. Make sure your money is, at minimum, earning a competitive interest rate. Interest rates fluctuate, but Bankrate.com offers a savings calculator and a list of the highest yielding savings accounts and CDs currently available. Another option for those just getting started is to utilize, responsibly of course, cash reward credit cards for as many purchases as possible (while paying off balances prior to interest accrual) and then place those cash rewards into an account for retirement savings.

Finally, there is a lot of attention on IRAs and 401Ks as popular tax shelters, but consider that a Roth IRA may be a better fit. Traditional IRAs and 401Ks delay tax income payments on contributions until withdrawals in retirement. A Roth IRA is taxed upfront, but withdrawals are tax free in retirement. If you are in a lower-income category now, why not pay the taxes now at a lower tax rate and while you are much more likely to have credits and deductions (from children, mortgage, education, etc…) at your disposal than you’ll have in retirement.

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“Budgeting” is nice buzz word. It’s easy to talk about. Who doesn’t have a budget, right? But when the rubber meets the road, is your budget effective and do you have a way to practically apply your budgeting decisions?

The EveryDollar app is a part of Dave Ramsey brand. It is a free app that allows users to create a budget and then record transactions according to various income and spending categories. When setting up a budget, users can customize the types of categories and can determine whether they want to do all of their budgeting or just some of it in the app.

There is a paid version of the app which comes with a number of perks, including the ability to link with bank accounts for automatic transaction recordings.

Why is budgeting so important? When families are unaware of where their money goes, it becomes difficult to make good decisions. For example, if members of a family love coffee and it is determined that each month over $100 is spent on coffee out, it may be prudent to purchase an expensive home coffee or espresso machine that previously would have been deemed “too expensive,” but in light of the amount spent at coffee shops, it would actually be a significant savings in the long run. In this example, we see how budgeting is not necessarily about “cutting” pleasures, but rather making smart decisions that are good for long-term financial wellbeing.  

Knowledge vs. Guilt. The purpose of budgeting and tracking expenses is to provide insights and awareness of spending habits; it is not intended to be a guilt-trip for every purchase. Wise budgeting involves allocating money for discretionary spending and even a cushion for errors such as unrecorded transactions or unexpected minor expenses (it’s good to be prepared for large, unexpected expenses also, but this is for the conversation of saving). Finally, think about the difference between dieting and creating healthy habits. Like most diets, budgeting that is ideal, but unrealistic, will not last.

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