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                            TO:   All Interested Onliners                                                                                                             FROM: Jim Bramer. Retired CPA-Auditor
                                                                                                                                                                                             FILE:  0933-06/fwi

                             RE:  "Where" and "Why" You have Money                                                                                Originated in September 2006

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                                                                                                             Today's "Ax to Grind"   

        The Lord has appointed almost every human being (from grade school on), plus every human devised organization, to deal with money - everyone acquires and spends money. Within this context, I have been working with Christian Ministries and Christians with respect to their finances for over 50 years.  About the time I started this Web Site In 1999, I also wrote an article entitled "Two Sides of the Same Coin."   Then in September 2003, I again emphasized "Where" and "Why" you have money issues in that edition of  JIMs JRNL.    When you go to  Photo  and  Video  you might find these "Bramer-isms" of interest.  Photo reports have a "Point in Time" thrust and Videos reports have a "Period of Time" emphasis.
         I still am impressed that too many people inappropriately manage their finances (I am talking about Individuals as well as Ministries) primarily via Bank Balance information - be it general Checking Accounts or Savings Accounts for specific purposes.  Please note the reasons in  Click Here  and  Here  as to having a pooled Bank Balances approach.  In other-words, when they rely on Bank Balance information only, they manage their finances based on  incomplete financial information, as I explain below.

                                                                                                  "Where" is the Money

         All too often money goes into the Bank and buying decisions are made only from the running Bank Balances or this  incomplete financial information.   Personally, I believe Savings Accounts should adhere to the principles set forth within  0006. and not  be used exclusively for the Why you have this Money  purposes, as some attempt to do.  This vital information of  Bank Balances  is only a part of the equation .... for prudent management of your finances, you urgently need to not only know  Where is the Money,  but you also must know:

"Why" you have this Money  

         You must have complete financial information,  or you need to maintain sufficient financial records so you know what righteous constraints  (self determined budget if you please)  there is on the money in your pooled Bank Accounts. You need to immediately know to what extent you have prudently restricted its use - especially for day-to-day operations.  Hopefully you have determined that other entities are entitled to some of this money on deposit . With such issues in mind, this means that Christian folk need to at least:

    01>  Judiciously determine your restricted day-to-day spending categories; then
    02>  Conclude in advance of making a deposit of money just how you plan to spend it; then
    03>  Do the essential record keeping, and reporting, so that you also have current 'Why" you have this Money  information - or how much is available to spend in that particular area or category, etc.
    04>  Such regular reports (preferably weekly) enable you to appropriately spend within your self defined restrictions, etc.  

        "Where" is your money information (see $3,862.60 below) is an essential part of the equation, but it provides you with only incomplete financial information.   You must also know "Why" you have this money (see the various aspects of the "Committed Areas" below).  Only then will you have complete financial information,  or the essential remaining part of the equation. 
         It is important for you to make prudent buying decisions from your "Why" you have this money reports and NOT only from "Where" is the money information and thus stay within your spending limits. 
         Below is a sample report showing some details - "Click On"  the highlighted areas for more information.

Side A -- Available Resources
	10-Both Checking and Savings			$3,862.60
Side 1 -- Committed Areas
	22-Due XYZ Credit Card Co			$1,541.71
	30-Spendable Balances
		31-For Church Donations	$ 300.00
		32-For Life Style Costs	$ 220.89
		33-Mortgage Paymt due soon	$ 985.00	$1,505.89
	40-SetASide (or Escrowed)
		41-For Upcoming Events	$ 600.00
		49-For Discretionary Purposes	$ 215.00	$ 815.00
		Total		$3,862.60

      TRUISM -- All Christian entities (People and Ministries) must handle money -  it is an essential part of our lives here on this earth.   When it comes to stewardship of physical resources, it seems that money has the highest profile,  We hope that you manage your finances via the appropriate use of  Banks and Credit/Debit Card Companies since you then maximize security plus you have a written record of money both coming in and going out when you use as little green stuff as possible                

    What do you think of these  "Three Phases of Spending Controls" ?(01)

    --- PHASE ONE ----

- -Before you make a deposit you already know how you plan to spend it - - 

        Arrange yourself so that when you receive checks you place them all into the Bank.  Or you do not cash checks, but you get the necessary   'green stuff'  when you use the ATM and charge the withdrawal to the applicable "Spending Area" , etc.  You already know how you plan to spend it since It is money that is "Internally Discretionary" - you decide how to spend it,  or it is  "Externally Restricted" - a Ministry's donor expresses a preference, etc. 
        As soon as "Internally Discretionary" money is available you need to know how you plan to spend it per your different "Spending Areas."   Know this information in advance, or please do NOT decide how to spend money after you obtain it.   Do the essential pre-planning (budget if you please) in advance.

                                                                                            --- PHASE TWO ---

- - - - Know if you have money to spend by agreed "Spending Areas" - - - - -

          Have a  Money Record Keeping System  in place, and at least weekly update it with the latest activity so you know if there is "Internally Discretionary" money to spend within your applicable "Spending Areas."  This system, of course, can be written out manually or via the use of some computerized bookkeeping system.  This is vitally important  so you can view the available balance in each "Spending Area" and make decisions accordingly.   

--- PHASE THREE ---

 - - - Spend only if that "Spending Area" has some available money - -

          Make righteous buying decisions based on available balances within applicable "Spending Areas" and not from just the balance in a Bank Account. As emphasized above, people are too prone to spend from Bank balance information only, etc. 
          You handle it as if you had gone to a "Spending Area" of your purse/billfold expecting to use such cash to buy something.  But you have prayerfully disciplined yourself so that you can not buy anything because there is no available cash for that "Spending Area" purpose.  Like available Bank Balances, you might have "Cash on Hand"  but it is not available for that purpose, etc.    

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     THRUST -- Please do your very best to have and effectively use the  complete financial information  discussed above as you righteously manage your money as unto our Lord.   Please   Click Here  and access such a computerized  complete financial information  effort known as "SPENDING CONTROLS - Jesus Savior Pilot Me." . =========================================================================================

        Of course, your feedback at Jim@bcidot.org  is always welcome.  I covet your continued interest and prayers for effective communication.

K E E P   L O O K I N G   U P  !!

       Click here  for a list of of our "For What it is Worth" Editorials as Online documents.

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    Originated in September 2006 ---  UPTD: July 19, 2008

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