“As iron sharpens iron, so one person sharpens another.” – Proverbs 27:17
Despite living in an era of unprecedented wealth, many individuals and families struggle to meet basic needs like food and shelter. Today, Brian Holtz joins us to discuss a new resource aimed at helping communities in need.
Brian Holtz is the CEO of Compass Financial Ministry and the author of Financial Discipleship for Families: Intentionally Raising Faithful Children.
A New Focus: Addressing Financial Hardship
Navigating financial challenges can be overwhelming, especially for those who struggle to make ends meet. While many financial ministries focus on middle- and upper-income groups, Compass Financial Ministry has taken a bold step to address the needs of those with little to no financial margin. Their latest initiative—Making Ends Meet—is a resource designed to help individuals and families move from financial struggle to stability.
Key Takeaways from the Research
Many of the financial issues we associate with low-income communities aren’t unique to them. The same challenges exist in middle- and upper-income households—they just look different.
What are these key financial challenges? Three primary takeaways from Compass’ research are critical for financial health, regardless of income level.
1. A Simpler Approach to Budgeting
Starting a budget is often the most challenging part of managing finances. That’s why this new resource introduces a simplified spending plan:
- Step 1: At the beginning of the month, pay all essential bills (giving, rent/mortgage, food, utilities, etc.).
- Step 2: Transfer savings into a separate account.
- Step 3: Use the remaining money for non-essentials (entertainment, clothing, eating out, etc.).
This method isn’t as precise as traditional budgeting, but it’s better to use an imperfect system than a perfect one that you never implement.
2. The Power of an Emergency Fund
We all know the importance of emergency savings, but it's even more crucial for those living paycheck to paycheck.
Without an emergency fund, individuals often get trapped in a cycle of debt. But with a financial cushion, they can make wise financial choices and avoid unnecessary expenses.
3. The Importance of a Support Network
Building a strong financial support system is a crucial yet often overlooked aspect of financial stability, in addition to budgeting and saving.
Money is a taboo topic in our society. We’re embarrassed to talk about our struggles, but if we find trusted people to share with before e