10 Ways to Improve Your Family’s Finances in an Economic Downturn

Although newscasts report that the economy has softened, some are losing jobs and the cost of food and energy are rising, it is important to remember that God is our source. "For I know the thoughts that I think toward you, says the Lord, thoughts of peace and not of evil, to give you a future and a hope (Jeremiah 29:11)." Here are 10 things you and your family can do to thrive in our current economy, while improving your cash flow:

1. Learn to be content. Eliminating unnecessary expenditures and activities often allows us to focus on our real priorities: our relationship with God, our relationship with family and appropriate self-care. Shore up these important relationships during this time. "Now godliness with contentment is great gain (I Timothy 6:6)."

2. Establish a written spending plan (budget). Ninety-five percent of people who struggle financially (even without an economic downturn) do not have a written spending plan. To prepare a realistic spending plan, keep a 30-day written journal of everything your family spends.

3. Pay your bills faithfully. Making your payments on or before their due dates is a testimony to your creditors and your family. Remember, we are stewards….over God’s stuff.

4. Don’t stop giving. Your giving of tithes and offerings is an act of faith, and releases God to get involved in your finances. Giving also opens the door to His supernatural increase (Malachi 3:6-9).

5. Negotiate with creditors as needed. Be proactive. Seek a meeting with them to make payment arrangements rather than waiting until you miss a payment and they come looking for you.

6. Eliminate unnecessary expenses (e.g., Cable TV, daily coffee, lights on when rooms are not in use, multiple trips to the grocery store, non-use of coupons, driving vs. public transportation, eating out vs. taking lunch weekly, etc). Agree now as a family to avoid going into debt this holiday season, and opt instead for budget friendly, yet heartfelt ways to demonstrate your love for those around you.

7. Establish a savings goal (even if it’s $1 per day) and deposit it into a savings account to build a 3-6 month emergency fund.

8. Have a garage sale, start a business or initiate other creative ideas to generate extra cash to pay down debt or increase giving and savings.

9. Buy non-perishable items in bulk, especially if there are several members in your household.

10. Schedule treats for yourself and your family (movies, dinner at restaurant) twice a month. This is also a great way to celebrate your success in improving your overall financial picture - and your godly relationship with each other.