Family FinancesDo you have a spending problem or an income problem? There is a difference, and, either way, there is hope for financial stability!
We were at our lowest point, financially.
After accepting a church scholarship to attend a Dave Ramsey Financial Peace University Class, we became even more disillusioned.
It wasn’t the teacher and it wasn’t the material. It was that we just could not figure out how to make ends meet, and we did not know what we were doing wrong.
At the time, the sample budget in the curriculum was based on a $50,000 per year income.
We were living on less than $20,000.
One Sunday, after my husband walked out of class in frustration, the teacher and his wife offered to come to our house and pore over our budget with us.
Not only did they drive nearly an hour to do so, but they also brought us lunch. Back in those days, each meal was a treasured commodity, and their generosity filled both our stomachs and our hearts.
The couple spent nearly four hours combing through our financial statements. When they finished, the man looked over us and gave us hope: “Well, you don’t have a spending problem,” he said. “You have an income problem.”
“So we’re not doing anything wrong?” I asked.
“No, you’re not,” he responded. “You just don’t have enough money to live on. You need to increase your income.”
We had a toddler, a baby, and would soon discover I was expecting our third. But that afternoon gave my husband and I the motivation we needed to find some way to increase our income. It put us on the pathway to financial stability.
The difference between an income problem and a spending problem
When we were still struggling financially, it was not uncommon for me to hear others say they were as well.
There was the day that I confided in a new friend that the only way our little girl was attending preschool was through a scholarship. She whispered back that she wished to apply because her husband only made $50,000 per year, and they had a big house payment.
The cynical side of me thought this girl was crazy. If she only knew how little money we are living on, I thought, as we watched our children climb the monkey bars at the park.
I soon came to learn that financial struggles have different roots–and that’s OK.
For some, like us, it was a low income. For others, it’s crippling debt from student loans, credit cards, or medical bills.
And for others, it’s poor spending habits.
Whatever the cause of our financial challenges, we all need grace to get through them.
Grace for Those with an Income Problem
1. Restore the lost art of piggy bank savings.
After the recession, families are realizing the importance of saving versus getting buried under credit card debt. Many are returning to the simple principals of piggy bank savings and teaching their children to form positive financial habits.
A few Christmases ago, my husband made our girls each three different jarred “piggy” banks (pictured above). One of these is designated for giving, one for savings, and one for spending. It is fun to watch these financial principles starting to click with our kindergartener who is learning about money at school.
When we were low income, I said we barely had two pennies to rub together, but, really, those little pennies add up. If all you can save is what will fit inside of a piggy bank, it’s OK to start there!
2. Teach giving first.
This is the pillar of a biblically-based financial plan.
Even when we were low income, we still tithed to our church. At that time, it truly felt like sacrificial giving.
We also continued to support a missionary family for $30 per month. We had begun this support before we were low income, and at the time we made the commitment it was not hard to see that $30 go. During our lean years, that $30 might have looked like the widow’s mite to some, but it was a lot for us.
But guess what? God never ceased to provide for all of our needs.
3. Increase your income.
I know (believe me, I know!) that when you’re still in the tunnel you might not feel that this is even possible. You may feel like you don’t have any skills to take on jobs that can increase your income.
Let me tell you, dear reader: When there is a will, there is a way!
After our meeting with our Financial Peace teacher that day, my husband began working more side jobs. And I poured myself wholeheartedly into growing this blog. Now, I make an income from home.
If you are looking for ways to increase your income, I encourage you to check out this post on legitimate income opportunities for stay-at-home moms from my friend Beth at Red and Honey. Money Saving Mom is also an excellent resource for ways to both save money and earn income through side jobs.
Grace for Those with a Spending Problem
I admit that when we first got married I was frustrated with how my husband spent money. He was never a super spender (we never racked up credit card debt, etc.), but I wanted to save and scrimp every penny, and he just wanted to have a little more fun.
To this day, this can be a struggle with us, but saving and spending doesn’t have to be all or nothing.
Even those with spending problems can find hope and learn to save and spend more wisely.
1. Teach kids the value of money.
We are just now starting this with our kids. My parents never shared with me their exact income (and we don’t plan on doing that with our kids either), but we do talk about how mommy and daddy work to earn the money to pay for our house, food, clothes, etc.
2. Define wants versus needs.
This is HUGE. Especially in America, there are so many things we deem as “needs” that are really wants.
There are really very few things that we absolutely, positively need in this life. There is a lot we can live without if we exercise self-control.
3. Realize that saving is fun.
Saving money can enable you to accomplish so much more than the fleeting satisfaction of a quick spend.
When our firstborn was two, I began this blog with the intent to save for her to attend a university model school. I drove her to her first day of kindergarten with a huge smile on my face because of meeting this goal!
Our family has personally been saving for a big trip to Costa Rica this summer. We’ve been working really, really hard over the past several years to make this a possibility, and we cannot wait to go!
In the spirit of transparency, I will say that our family is still currently trying to figure out exactly what a decent budget should look like for a family of five. We have more money now, which gives us wiggle room to spend more, but we are still learning how to be the best stewards of our income.
Do you have a spending problem or an income problem? What is your biggest financial challenge?
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Disclosure: Thank you to ECCU for sponsoring this post!
Tran Steel
I love the idea of Saving is Fun. I want to instill that in our children. To hold off, to wait, to dream rather than going for the fastest, easiest, sometime costliest both in literal sense and in intangible things.
My hubby had a friend who love big fancy things but he scrimped, saved, and sacrificed to get those and that really impressed upon my husband.
Erin
Yes! We want our kids to feel the same way!
Rachel
A few months ago, my hubbies car broke down. It went in the shop, and he needed a way to work.. He drove his truck that DOUBLED our gas price each week, but then it broke down also. He drove my van, until it also broke down. We had no savings and had to borrow money to pay it. If it wasn’t possible for us to borrow it, I don’t know where we would be without savings. Can’t stress enough the importance of having something to fall back on
Erin
I’m so sorry for your recent car troubles, Rachel! I pray you all find some hope, relief and encouragement!
Carmen Van Deursen
Even a penny should be held accountable!
Erin
Yes–absolutely! This is hard, sometimes, though!
brooke Greenstreet
thank you for sharing your story! I am encouraged to know anyone can do this!
Erin
You are welcome, Brooke! I am so glad you were encouraged!
Jessica
Thank you for this post! I am laying in bed in tears because of the financial problems and challenges we have to overcome. I am a stay at home mom and my husband works hard and provides for us but with student loan debt plus living expenses just the basics it has been up and down challenges. I have been working on ideas and currently working on a project to bring in an income to help pay debt off. We recieve took a huge hit due to student loans and I feel so terrible because my loans are killing us the most. I am just praying that God will help us through and give us strength not only to be faithful and keep trusting Him but to overcome and be in debt again so thank you for the encouragement and hope it is helping see the light Jesus is shining to get us through our darkness.
Erin
Hi Jessica! I am so encouraged that you were encouraged and given some hope through this. Keep praying about that project and ask the Lord to lead you! I remember feeling so hopeless and like we were stuck in a tunnel with no light at the end of it! There is hope. Remember that the Lord is your Great Provider as well. I know when we were low income that was one thing that I held onto every day. {hugs}
Jennifer B
So very important to start saving with your very first job. Wish I could go back. 🙂
Erin
Me too!
Pamela
It’s so important to teach children the importance of saving. I love the idea of making saving fun. I wish I had been taught about savings and the pitfalls of credit card debt when I was young. While I never racked up the amount of debt some people do today, I did live paycheck to paycheck with some credit card debt for many years. When blessed with a new job that allowed me to pay off my debt in 6 months and start saving, I turned around my finances and have never gone back into debt since. I’m so thankful for what I have learned as I am now retired, so my husband and I are learning to live on less.
Erin
I am so glad to hear you were able to get out of debt, Pamela! Praise the Lord! That is awesome!
Tammy Wever
Income! My husband’s job was commission only! Many months with no income. He has just started a new job, trying to dig out of the hole we’re in.
Erin
Oh that is so hard, Tammy! I can only imagine a commission only job. I am so glad to hear you are able to start rebuilding now.
Lisa @ This Pilgrim Life
Erin, thank you for this post. I know that it will be helpful to so many. Even as hard as it was to go through a period of time struggling so much to know where the funds to live would come from, it’s incredible to be able to look back and see how the Lord provided for you AND taught you so much that you are now able to use to help others. I’m thankful for your ministry and how it not only blesses us but can bless your family, too, with more financial stability. 🙂
Erin
Thank you so much, Lisa! It brings me so much joy that the Lord is using our story to encourage others! I have so much more in my heart I want to share, and I pray He will allow me to do so!
Mickey Louth
We did the save/spend/tithe with our kids too. We also encouraged them to be ‘entrepreneurs’. They dug fishing worms to sell, then when they had saved enough, they invested in a beef calf, and the cash kept multiplying each year. They had enough to help pay their first year of college or buy a vehicle to help when they had jobs in town. They still have great money habits to this day!
Tiffany
Can we adopt you as a 3rd grandma?!?! We need your wisdom!!
Erin
That is AWESOME!!! I hope we can encourage our kids to do the same!!
Victoria Périgaud
Thank you so much for this encouraging article. Definitely a wonderful outlook on financial struggles and spending
Erin
Thank you! I’m so glad you were encouraged!
Jennifer Moya
Having an emergency savings is imperative and I think if our younger teens can start a savings and have a minimum of at least $1000 when they get out on their own it will really set them up for a lifetime of knowing the importance of saving.
Erin
That is such a great idea about encouraging your teens to save!
NicoleW
I’m wanting to research their personal savings account later. We’ve had unemployment and underemploment until a few months ago and just now are getting back on time with bills and starting to build a savings from scratch and they look like a good place to research! Thanks!
Erin
We went through a short time of unemployment and then a longer time of underemployment as well. I am so glad to hear you are getting back on your feet!
Sheila Laurence
Per the prompt: My advice would be to stay out of debt. Life is so much freer if you aren’t burdened by payments that rob you of choices.
I love that your Dave Ramsey instructors went above and beyond what was required!
Erin
Thanks so much for this great advice, Sheila! And we were incredibly, incredibly blessed by that couple. I didn’t write about this in the post, but the man actually passed away suddenly of a heart attack three weeks after that. He has left an eternal impact on our hearts in so many ways.
Lisa Brooks
We are working on paying down debt and rebuilding our savings after my husband was injured and couldn’t work. We quickly learned just how important having savings is and we are so thankful we had some.
Erin
I know it can just take one accident, one incident, etc. to wipe it out. Thanks so much for sharing, Lisa. I am so glad you are rebuilding!
Clare
Inspiring story!
Erin
Thank you!
Jill York
I love that you mention giving when it is very sacrificial. God blesses that so much and it is a joy to see God provide miraculously. He never fails in providing! I agree that it’s so easy to see a want as a need. Those resale shops may have great $4 deals that are hard to pass up, but it adds up fast when in a really tight situation financially. You are such an awesome example, Erin!
Erin
It IS such a joy to see God provide miraculously! I never felt more aware of GOD’S provision–and that all things come from HIM–than during those very lean years!! I totally agree about those resale shops! My biggest money-saving tip is: Just don’t go shopping! LOL But I guess it’s easier for me to say b/c I hate shopping anyway! LOL Thanks for commenting, Jill!!
Heather Siani
I want my girls to learn the importance of saving to pay for things and the joy of delayed gratification. Just because you want it, doesn’t mean you need it.
Erin
Exactly!
Keelie Reason
It is true, a lot of families have an income problem, not necessarily a spending problem. I know around here it has been like that for a long time.
Thanks for the encouragement that we can all do more to meet our family’s needs. It is important to be good stewards with what you have and sometimes that means, increasing what you have.
Erin
Yes-it was a lightbulb moment for us when we realized that!
Diana
Thanks for sharing about this great christian-based financial resource. I’ll be checking it out!
Erin
You’re so welcome! I hope one of my readers wins the $1,000! LOL!
Danielle Young
I wish we had known about “Murphy repellant” when we first got married. We recently spent all of our savings on our home heating system. But that was so much better than putting it on credit!
Diana
Okay I had to google “Murphy repellant”. Love Dave Ramsey. We used his budgeting before but I canceled the subscription because mainly inconvenience for ME specifically. I saw on his site after googling the phrase “Murphy repellant” the Gazelle Budget is now on a mobile app. Going to re-visit this now because I loved how it worked.
Erin
Hmmmm…I have no idea what this is, so I am going to have to google too! LOL
Erin
I must look this up asap! I have no idea what this is! LOL
Àshly
We used to also live off less than 20k a year. Where I live, that’s not easy to do, but we did it. As our income has risen, we now have a spending problem. 🙁
Erin
It’s so hard, isn’t it? We are trying to figure out what exactly is a realistic budget for our family right now now that we have more income. We all need grace–no matter the root of our financial struggles!
Alyssa
I enjoy reading your posts about your financial journey. It has been encouraging to me as my husband and we try to save and be wise with our money on a low income. It is fun and worth it!
Erin
Thank you so much, Alyssa–it encourages me that others are encouraged! I have so much on my heart that I want and hope to take more time to share. I never want to forget that place. I hope you are infused with hope today!
Natalie Cone
Thank you for posting this. My husband and I clash on finances the same way you do – I want to save, but he wants to “make memories”. And these “memories” consist of expensive vacations. I like making memories in small ways, but his style is more elaborate and he gets bored with my ideas. I finally recently snagged a freelance writing job that will help us make ends meet. But he’s now started making plans to purchase a boat in our near future. Financial freedom is about meeting each other’s needs while also becoming free from the idea that money provides happiness and freedom. No. GOD does.
Erin
I’m so glad you can relate, Natalie, and I hope you love that freelance job and that is provides for your family and opens up doors for you in the future!!
Naomi
Start saving when you are young, before you get married. It makes things a lot easier as newly weds to have some savings for all the expenses that come with becoming a family & having your own home.
Erin
I agree! I so wish I had known this/done this!!!
Tina
Canada doesn’t use pennies anymore, so sadly we can’t save them 😉
Erin
Haha!! Nickels? Or what are your coins called?! Loonies? Toonies? Am I WAY off?! I should know this! I spent a semester in Canada!
Grammyprepper
Erin, this post really opened my eyes, but also affirmed what I’ve learned. We have both an income and a spending problem. I’ve been unemployed for 15 months and I was the main breadwinner. What DH makes does not even cover the basics. My taking a minimum wage job will help, but won’t keep us up.That doesn’t mean I am above it. We are looking for less expensive housing, we’ve gotten rid of the cable, taken a ‘dumb phone’ plan vs our smart phone plan, and ‘so on. Even before the job loss, we shopped at thrift stores and dollar stores. But we are close to going under. I”m not looking to live the lifestyle we used to have, I’m happy to live more simply. Surprisingly, DH is on board with that! IDK, your post just opened it all up for me and how we really need to make more changes to make this work…but honestly, we could not live on DH’s salary alone…and that’s the scary part…I’ve been unemployed so long, that no one wants to even look at me…Sorry, just venting…
Erin
Hi Grammy,
I am so sorry you are going through such a tough time, financially. I remember feeling like I was stuck in a tunnel with no light at the end of it. I hope you will be encouraged and filled with HOPE very soon!
Jessica
We seem to have a spending problem compounded by an income problem. We are quickly getting it realigned but it’s not an easy task. Once you have over committed yourself to a mortgage then gotten behind its too late. So then you have to cut way back! Thank you for the helpful tips in this post! I am definitely going to implement them to help us turn our attention back to saving instead of spending!!
Erin
I know it’s not always easy, but I’m so glad you were encouraged!
Rebekah Salter
I love this. We’ve lived in both camps- a spending problem and an income problem. We’re finally working towards nipping the spending problem in the bud, so that we can eventually work in full time ministry. I appreciate your steps and the call for grace.
Erin
That is such a wonderful goal, Rebekah!
Beth | Red+Honey
Thanks for linking to my post, friend. xo.
I relate to this post so much, as you know. I really hope to be able to teach my kids good money habits… and I hope that they’ll make good decisions from the start, and learn to be wise with their spending, even when they’re young adults.
Erin
You are so welcome, friend! I am so excited for what God has in store for you in “restoring the years the locust have eaten”!
Rainah
I would tell future generations to stay out of debt, save, and live within your means-even if it means going without.
Erin
Yes! Thank you!
Jennifer Lavallee
Saving money helps produce discipline in your lives. It’s wise to set aside for future needs or crisis.
Erin
I agree!!
Crystal
Erin I really appreciate this post! I’m a saver by nature, and am currently in a pretty extreme season of not having the income. However God has been faithful, as we have stepped out in obedience to Him. Saving in the past, and maintaining good credit has helped a lot. I’m continuing to work on increasing our income, but also knowing that God is able no matter what!
Erin
I hope you were encouraged!
Heather @ My Overflowing Cup
We moved from having a spending problem to having an income problem. We are doing all that we can to bring more in. My husband takes side jobs, I substitute teach, clean houses, and write freelance. It’s never much, but it does add up.
You are so right about giving sacrificially! Even though we struggle, we have never gone without anything we have needed. God truly does provide!
I think saving is fun, too. I see it as a challenge to see how much we can do within our limitations. It’s never easy to do without the things we want or think we deserve, but with hard work and dedication, our efforts alway pay off.
Thanks so much for sharing your story with us, Erin. It is so encouraging. Blessings to you and yours.
Erin
Thanks so much for sharing YOUR story, Heather! I pray you are encouraged. I know it’s so hard when you have an income problem! It sounds like you are doing what you can! Your work is not in vain!
MARTHAIA
Always save something each pay period small or large just SAVE …
Erin
I agree!
Jennifer
We just paid off $3700 in medical debt! We have always had medical debt looming over our head from health issues that our two sweet boys faced. Thankfully, God has always been faithful to provide for us. In miraculous ways, He opened up doors for us to buy our first house. We are so excited while remaining committed to giving generously and saving continually. We are putting any and all “extra” money into our savings to pay for closing costs and new (to us) furniture. Thanks for the encouragement. We were once living on so very little and I can still remember those days so vividly. He is our Provider. That is the one thing we learned and have continued to hold onto.
Erin
He IS the Great Provider, Jennifer! That is one thing we learned so much, too! Praise the Lord you were able to pay off the debts and buy a house!! Congrats! It sounds like you have been through a lot!
ChristineD
My family is at our lowest point right now financially. It is inspiring to see there are ways for us to build our family up even more. We make it as is, but have a lot of goals to become self sufficient. Can’t wait to see it all through. 🙂
Erin
I love your positive attitude, Christine! I am encouraged you were inspired. There is hope!!
Amber K
I love this post and am so encouraged by it. My husband and I are focusing on getting out of debt, and it’s been a journey thus far. Saving is so important as life happens and we should be prepared. We were not and always wound up using our credit cards to resolve the problem. If we had been better stewards from the beginning, we would have an emergency fund to fall back on and would be without the debt we have. It pays to save and be wise with what God has blessed and entrusted us with.
Amber K
My Email is [email protected] 😉 I had entered it incorrectly
Erin
Thanks, Amber. Don’t beat yourself up. We all make mistakes and God’s grace is abundant! It sounds like you are very wise now!
Kathy
Love these ideas. I was blessed with these teaching and training from my parents. I’ve passed that on to my children and am so thankful they have received it well and are living it out. I wasn’t familiar with this company so thanks for sharing.
Erin
I love how you are taking what your parents taught you and continuing the legacy of financial stewardship!
Beth
Don’t only save to spend. You need savings for the expected and the unexpected. But don’t become so dependent on money management that you lose sight of God’s provision.
Erin
Absolutely!! Thanks for the input, Beth!
Mackenzie
Awesome post! Would love to use this money to start a savings account for our second child. 🙂
Erin
Thanks! That would be awesome!
Kara
We are on baby step 2 of FPU. Having even that small savings account of $1000 has saved us many times this winter (and we’ve had to go back to filling that savings account many times). But, it gives me some peace to know that there is some money there “just in case”.
Erin
Yes! It does give so much peace of mind!
[email protected]
Such practical tips! I’ve really been on both sides of this too. Fortunately, I was already accustomed to frugality when we had to pay some incredibly expensive medical bills. I wasn’t sure where we could possibly cut our budget further to make the payments, but God showed us where we could do it. And then in seasons of affluence, it’s really easy to forget what it was like in the lean years. It’s really all God’s money, so it’s so important that we approach this area with wisdom and stewardship of His resources in mind, but so often we just get lazy. Or maybe I’m just speaking for myself. 🙂
Erin
You’re definitely not speaking for just yourself, Gabby! I pray that the Lord helps me to never forget that time, so I can encourage others!
Rachel
Great article! Yes, I’ve often felt a little jealous of my sister’s low income (but no debt) because it is quite challenging to live in circles of people making a ‘good’ income and to be worried about feeding your children… Although, I grew up poor and life was much better (simpler) than when we did have money!
Erin
“I grew up poor and life was much better (simpler) than when we did have money!” <---I hear this a lot! Thanks so much for the perspective!
Patti
Thanks for this!
Erin
You’re so welcome!
Jill Boyd
Learning to save early for emergencies and large purchases will allow you to earn interest instead of paying it!
bethany T
Consider whether its a need or a want before purchasing and keep perspective of your money by doing that.
melissa
We started on our own road to financial peace about 18 months ago. Still trucking along with several major setbacks. We have discovered we also have an income issue (or need to move to a cheaper state) in order to see the progress we would like. Hard to do with 4 little ones in tow, but it is possible!