It's time to get your financial stewardship in order for the year

Health and finances are two top things on everyone’s minds in any new year.

Inflation at the grocery store makes healthy food choices seem out of reach, and health care costs continue to rise each year. We want to be good stewards of the bodies and the resources the Lord has given to us, but is it even possible? As a financial coach, I’ll save the health tips for someone else, and I won’t even pretend to know how to fix our broken health care system. But I will tell you that getting your finances in order will help you prioritize health (and other parts of life) with less stress. Money is not nearly the most important thing in life, but it is a tool to help us with all the more important things.

With that in mind, here are three things to implement this year as you work toward better financial stewardship.

Know your values

With a world more connected than ever, comparing our lives to others’ is easy. But this year, take a step back and determine what your unique God-given gifts, passions, and values are.

The average American may spend “X” amount of money on a yearly vacation or on their monthly grocery budget, but that doesn’t mean that you need to. Maybe you are gifted in hospitality, so you spend extra on groceries for dinner parties but are willing to drive an older car to make it possible. Maybe you value taking your children with you on yearly missions trips, so you forgo other expensive activities for them (i.e., travel sports leagues). Maybe you adopt and foster children, so you purchase a larger home but you’re willing to travel less so you can afford the mortgage. Maybe you value home education and must make specific sacrifices for that to be possible.

Prayerfully determine your (and your family’s) unique calling and then let that determine how you structure your finances. Just remember, you have to decide on things you are willing to sacrifice to make those priorities possible.

Build your unique budget

Once you know the goal and focus of your finances, it is time to build a financial plan that reflects those values. A monthly budget is the most practical way to ensure your money is going toward your values. It also allows you to see when things are out of whack and need adjusting.

The idea of budgeting, to many people, feels like a burden, but let me challenge you to change your perspective. In truth, a monthly budget is a tool many families use to find more freedom: Freedom to put their money toward the things they value most. Freedom to say “yes” to virtuous and right things. Freedom to escape the greed and overconsumption that our society often worships.

If you’ve never budgeted before and don’t know where to start, I love the website/app EveryDollar. I’ve used the free version for nearly a decade. But whatever format you use to budget (spreadsheet, notebook, app, envelopes), it doesn’t have to be complicated. Simply estimate the next month’s income and list all your expected expenses (including giving, saving, etc.). Work out a plan to make those two (income and expenses) equal. Track your progress over the month and then make adjustments as needed.

Of course, this simplifies it a lot. Budgeting does take several months to get used to. However, it isn’t as complicated as some make it, and there are plenty of resources to teach you more. The effort is worth it.

Make good habits easier

Once you’ve set your values and your budget, there is one more thing to do that will make your personal finances run more smoothly in 2025: automation. Make your good habits automatic. Autopay bills where it makes sense. Automate debt payments so you don’t get behind. Commit to automatic monthly donations to your church or favorite charities. And automate your savings and investing goals.

Don’t rely on sheer discipline and organization. Use technology to your advantage and set up automation where it is possible. This makes the most difference in savings and investing. If you’re saving for an emergency fund or a large purchase or want to invest more for retirement, don’t wait to use the “leftovers” at the end of the month. Set an automated transfer for each payday.

Even if you are only able to save $25 per paycheck, start there. Set an automatic transfer from your checking account to a high-yield savings account. Increase as you get raises or pay off debt.

With that, I’d like to remind you that we serve the Giver of all good gifts. He will provide all our needs. We only need to be faithful, grateful, and prayerful as we manage his gifts.

May He bless you more abundantly than you could ask or imagine this year.

If you have any questions or would like support and encouragement managing your everyday finances, feel free to reach out via email at [email protected].