Principles of “Freedom Budgeting” with Brandon Sieben

Many people are using the FaithFi app to help provide the wisdom, community, and money management to stay on track, financially speaking. To date, over 37,000 members are using its digital envelope system, participating in our community forums, and engaging in virtual workshops. And one of the most convenient features is the ability to keep all your accounts in one place for an easy-at-a-glance view. You can choose from one of three options, depending on your management style, and it's available on desktop or mobile.

Go to faithfi.com and click App to get started. Can you name two things that don't seem to go together, but actually do? How about freedom and budgeting? Hi, I'm Rob West.

We hear from folks all the time who feel that living on a budget cramps their style, hems them in, and makes them feel trapped. Brandon Sieben is with us today to make the case that just the opposite is true. Then it's on to your questions at 800-525-7000.

That's 800-525-7000. This is faith and finance, biblical wisdom for your financial journey. Well, it's always great when Brandon Sieben joins us.

He's chairman of the board of Compass Financial Ministry. Brandon, great to have you back. Thanks for having me, Rob. Hope all is well. Oh, it's going great. And I'm thrilled you're here today to talk about something you call freedom budgeting.

I love the sound of it. It sounds like a paradox, but I'm sure you're going to explain it to us. And I believe you have a story that sets this up, don't you?

Yeah, it starts with my sister. You know, growing up, we watched our parents budget and pay bills. But after college, all that became our responsibility. And she just got overwhelmed. Apartment, car, food, going out with friends. And the cost of things just kind of swamped her boat.

Yeah. Well, your sister, Meredith, admits that the last thing she wanted to do was budget, if I know how the story goes, but realized it was necessary. So let's pull the principles out that you taught her to master in what you call freedom budgeting.

Yeah, she hated it at first, didn't want to do it. And so the first principle for her was just to keep it simple. You know, the goal here is easy. So you'll do it and to make it visible. And so for my sister, it was a simple Excel spreadsheet on the refrigerator for your listeners.

The Faithfly app would be perfect. I like the way you're thinking. Absolutely.

But keep it simple. That's the starting point. All right, what's number two? Number two is to be honest.

You know, Jesus tells us in John eight, the truth will set us free. And that's true for budgeting. The goal and principle two is transparency. You know, really knowing what's coming in and where the money is actually going, especially if you're behind.

There's nothing less or maybe even spent more than you made. And so for my sister, the truth was she had to cut spending. Well, and we should point this out because it takes courage for folks. I mean, they don't want to drop a budget so often because they don't want to see where their money's going.

They know it's not balancing and they're not quite sure how they're going to get there. And that leads us, I think, to this third principle, which is allocate non-negotiables first. Unpack that for us. Well, it means separating the needs from the wants. The needs get paid first, like tithing and rent, utilities, food, car, those things. If there's anything left, we can talk about wants.

But for my sister, there was not anything left. So she had to cut out the wants for a while, like things like going out for dinner or having cable. Yeah, exactly right.

I mean, we often talk about the big four, right? You got to keep a roof over your head. You got to keep the utilities on.

You got to keep gas in the car to get to work. You got to keep food on the table. But everything else is negotiable. If we're going to live within our means, we need to be able to cut where we need to to balance that budget. And that's why we've got to start with those non-negotiables. Well, I think we're already experiencing some freedom here because if you're setting money aside for those non-negotiables, then you're free not to worry if you'll have enough to pay for them. So let's lead into that next principle.

We are right. Peace of mind comes when we know we can make it to the end of the month, but we may be still playing defense. So principle four was to force herself at first to save something every month.

Getting in this habit is super important. Think about it like this. If I have a dollar and spend a dollar, I have no options. But if I have a dollar and spend 80 cents and save 20 cents over time, I have options. But you have to apply those first three principles first.

You have a budget, you know what's coming in, you know what's going out, and you're committed to spend less than you make. And then it's really just having the discipline in principle four to save. Yeah.

And discipline is a key word when it comes to budgeting. All right. That leads us to number five. And now we get to start having some fun. Share that with us.

Yeah. Well, when it all comes together, once the savings start to build, the principle number five is to begin to set aside or build back in the budget something for fun. And at this point for my sister, she was making a little more. She was saving, not spending more. So she had some flexibility to add some things back. But she was very intentional in doing that. And she knew how much she was going to allocate to fund and what she was going to spend it on.

But the point of number five is reward yourself for a good job. So Brandon, I'm sure this was a game changer. What was her experience then as she was now leaning into freedom budgeting? Big takeaway, she became free from a bunch of burdens and anxiety that were killing the joy in her life. And she was able to move towards being free to living how God wants us to live.

And so as Luke 16, 13 says, she chose God over money and she became free. I love it. Brandon, always appreciate your time, my friend.

Thanks for stopping by. Thanks, Rob. Brandon Sieben, chairman of the board at Compass Financial Ministry. Check them out at compass1.org. That's compass1.org. Back with your questions after this.

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I'm Rob West. We're taking your calls and questions today. Eight hundred five two five seven thousand is the number to call again. That's eight hundred five two five seven thousand in the news today. The cost of attending some colleges is now nearing six figures a year, including tuition fees, room and board books, transportation and other expenses. That's according to the Princeton Review's listing of the best schools in America. Those nearing a hundred thousand dollars a year include New York University, Tufts, Brown, Yale and Washington University in St. Louis. All of those schools now have an annual sticker price of more than ninety thousand dollars for the coming academic year. Analysts are saying that with a typical increase of four percent a year and in many years it's running higher than that on college tuition inflation. Those schools and others will cross the one hundred thousand dollar a year mark by twenty twenty six. At some point you have to question whether a diploma from one of those schools is really worth four hundred thousand dollars. Of course, it's important to borrow as little as possible when you head off to college.

We're very clear on that. But you can do that by choosing a more affordable school, picking up some AP credits in high school. My son entered college with 15 of them and he started halfway through his sophomore year on paper.

And that really helps. Also, landing scholarships can be a big help there as well. I think the key is making sure that the career track that God has you on any time you are borrowing is going to result in a job on the other side of it with an income that allows you to pay that back in a realistic time frame.

I would say use a 10 year payback is kind of your baseline for that. So be sure when you're choosing that major, it gives you the skills employers are willing to pay for because that will make it a whole lot easier to pay that back. Also, don't miss the opportunity to do some work, maybe working in the summer, at least for the first couple of years before you need to start heading into some internships, maybe getting an on campus job. I was a resident assistant and had my room and board covered, plus a small stipend when I was in college. There are ways to get creative that don't take away from your studies and can reduce the overall cost of college. The key, I think, is to be diligent and thoughtful.

Don't just accept that even though the government's willing to extend you these loans, don't just accept that that's the way to pay for college. Hope that helps. All right, we've got one line open. 800-525-7000. Again, that number is 800-525-7000. We do have lines open today. We're looking forward to taking your questions on whatever you're considering in your financial life so you can call right now.

Let's begin in Mississippi today. Hi, John. Go ahead, sir. Hello. You mentioned a Christian savings and loan. Yes. And I was unable to get contact information. Well, that's an easy one, John.

I can absolutely. There's only one in our view. We have a longtime partner called Christian Community Credit Union. And what we're finding is that increasingly God's people are wanting to align their banking partner with their values to make sure that the companies they're doing business with are aligned with their values as believers. And so Christian Community Credit Union is just that serving God's people as a trusted banking partner with deposits and loans and finding compelling yields on their CDs and savings accounts, but also taking a portion of the profits and sharing with ministries, not only here in the United States, but around the globe, doing great work in the name of Jesus. And the best way to find Christian Community Credit Union is at join Christian community dot com. So that's just simply join Christian community dot com.

Is that what you're looking for? Yes, sir. All right. Very good. Well, thanks for checking in with us today. Glad we could check something else off your to do list. Now, the next step is yours to reach out to those fine folks, but we appreciate you being on the program today. Eight hundred five to five.

Seven thousand is the number to call. We'd love to tackle your financial questions today. Whatever is on your mind. And, you know, here's the big idea. So often we are overwhelmed by financial decisions because there are so many choices to make. We have limited resources and we're more aware of that right now than ever with high inflation. And we're trying to evaluate our priorities and make spending decisions. The challenge is we often do that without a plan.

And so we're just, you know, paying for the next thing that's right in front of our face without stepping back and say, wait a minute. You know, my spending is a picture or perhaps you could say it tells a story about what's most important to me. And as a manager of God's money, I want to make sure as a faithful steward that I'm aligning what is truly most important to me, my values and my priorities with my spending decisions, because the reality is it all belongs to God.

And I'm his money manager. And so that's where the family budget comes in, the spending plan that says, OK, I want to give every dollar a name. And I want to make sure my values are truly reflected, that I'm providing for my family and I'm enjoying what God has given me. And I'm saving for the future and saving to fund those goals that I have beyond just my monthly expenses.

Maybe it's giving more and continuing to elevate your giving. Maybe it's saving more, paying down and eradicating debt once and for all that can only be done with a plan. And that's why we talk often about putting that plan in place. And that's precisely why we created the faith by app.

So you can have a quick and easy smartphone version of the envelope system that's beautifully designed, simple to use. We'd love for you to check it out. It could be the difference maker in you having a plan and sticking to it. I know it is for Julie and I. I literally can pull up and I was just in my faith by app a few minutes ago looking at one of our envelopes just to see where we add in this particular category. It's that simple. And she and I have a place that we can each go to see exactly where we stand during the month.

If you'd like to check it out, go to faith by dot com and click app. All right. Let's head back to the phones. We've got lines open. Eight hundred five to five.

Seven thousand to Texas. Hi, Kevin. Go ahead. Hey, Rob. How are you doing today? I'm doing great, sir.

Thank you for your call. Yes, sir. Hey, I heard you speaking about one time before about when you get ready to pass on money to your heirs.

You had a book or something that was called Don't Make Errors With Your Heirs or had some little catchy title like that. I got to figure out what I got to do. I got to do to get a copy of that. I love it. Well, I've got a solution for that as well.

I'm just solving problems left and right today. It's the book called Splitting Heirs. And you're right. It's kind of a fun play on that term. Not splitting hairs, but splitting errors, H-E-I-R-S. And I'm going to make it really simple because I'm going to put a copy of that in the mail to you just as our gift to you, Kevin.

So when we're done here today, I want you to stay on the line and our team will get your information and we'll get that right out to you. It's by our good friend Ron Blue, one of my mentors. And I believe it's the very best book out there. Not on the mechanics of estate planning. You need to check with your attorney on that. But before you get to your attorney, it will help you think through the why of your inheritance and your legacy planning. You know, one of the big ideas he shares in there, which is counterintuitive to some folks, just because it seems perhaps un-American. But it's this idea that if you love your children equally, you will treat them uniquely. And Ron makes the point that your kids are at different stages of life financially and spiritually and otherwise. And so that will often, doesn't mean it has to, but that will often help to guide how you leave money. And that can change over time. Another principle that he has in there that he says kind of tongue in cheek is do you're given why you're living so you're knowing where it's going. And I think that idea is that so often, you know, regardless of the size of our estate, it might be a hundred thousand or it might be a hundred million. But the idea is so often we kind of hold everything back and do all of our giving at death, at least our serious giving.

And what if we were to be thoughtful about establishing a financial finish line now so we could do even more giving while we're living and knowing where it's going and watching how God is working as we give to the causes that are on his heart, both locally and around the world. So anyway, the book is called Splitting Errors. I'll put it in the mail to you. You stay on the line. We'll get your information and we'll be right back on Faith and Finance.

Here's also what I like. You can connect with people around the country. It's like social media, but better. Ask a question, get an answer and share what you're learning about money and investing. So why don't you grab your phone right now and download the Faith Buy app? When you hear the phrase rich toward God, what comes to mind? Surely it doesn't mean making God rich. Is it about us becoming rich so we can give? Or maybe it's an invitation to something much bigger in the new Rich Toward God Study. Faith Buy has created a way for you to explore and reflect on a well-known biblical parable about a very rich man with a very big problem. Request a copy of the Rich Toward God Study today with your gift of twenty five dollars or more by going to faithbuy.com slash give. Hey, thanks for joining us today on Faith and Finance. Got room for a couple of additional questions.

Eight hundred five two five seven thousand. You have a financial question you can call right now. Let's go to Virginia.

Hi, Tommy. Go ahead. Yes, sir. Thank you for taking this call. This is a blessing I have. So not asking for advice.

I wanted to say they hope that is rendered by listening to you and to your people is so much of a big gift that my wife and I who listen to you all the time. We are a small business since the latter 70s. I'm in my early 70s.

I have a not a good aneurysm. So, you know, the clock's ticking. But we finished the lawsuit about two years ago. Unusual, frivolous lawsuit where we had to defend ourselves in our state. It took three years, took a little over two hundred thousand. We're still paying one of the lawyers.

And also that at times it was sort of like walking through a dark cloud. But listen to people talk, listen to your practical advice, some sort of a geek. So I understand math really well. So today we really look forward to the future. We we only have like one hundred and fifty thousand in savings.

We live in a little small, modest house, but we have a vibrant small business, family business where the customers love. But that little frivolous lawsuit just took its time and we ended up turning it into the general assembly in our state. And actually one of the top people in my state was terminated.

So it's a slow, full circle. We stay involved in their community and our church and we try to render hope. And I just want to tell you, it's just so huge because I hear a lot of people stuff.

I used to have shame that hit me really hard because I hear with some people there that have some successes. And I said, well, we had that. And this is just what we were chosen.

We were chosen to go through this. So it's OK. And out of that 40 plus years in our business, we only had one lawsuit like this. So as my son said, you just had a lemon, dad. You know, her lawyer said the same.

You just have four lawyers that you just had a tremendous lemon. So thank you so much, Rob. Thank you. People that call and share and you never give up and you never know which way the future holds. It's not all in our power. And I've had to learn to relinquish. Well, what a powerful testimony.

Well, I appreciate you sharing that, Tommy. Listen, you've been on a journey and you've seen God's faithfulness and you haven't had any shortage of challenges along the way. And that's true for all of us. And yet you're giving testimony here today to God's faithfulness, his provision, the fact that even before the first dollar, we're rich. We have an abundance because we were adopted into his family through the shed blood of Jesus. And so we have hope and we can be a light and we can be salt in this world and proclaim God's goodness and faithfulness.

And the fact that he's trustworthy and his promises are are true to the rest of the world that's looking on and watching. And I appreciate you giving testimony to that today, sir. And I'm confident what you just shared will be an encouragement to many in our listening audience. So God bless you. Thanks for taking the time to call in today.

We always love to hear stories of folks just like you. Let's go to Mississippi. Chris, are you with us? Yes, I am. Excellent. How can we help you?

Yes, sir. Our oldest son and his wife had purchased a piece of property to build their house on. I found a better piece of property and wanted to sell the first by the second. And the interest rate that he was going to have to pay at the credit union was twice what I was getting in a high interest savings account. So I loaned him the money, told him that all I wanted was the interest rate. I felt like it would be a good deal for them while they are in the process of selling their first piece of property and then would return by principle. So I just want to do the right thing. I'm a little conflicted on whether I should continue charging interest, which he's paying monthly, continue charging him that, or forgive that.

Yeah. Well, you know, I think it's a worthwhile question, Chris, something you need to think and pray through if you're married, you and your wife, thinking and praying through that as to how to approach this. I mean, biblically, we're under the law of Christ, not the law of Moses. And so there are no restrictions on charging or receiving interest, even, you know, to a fellow believer or family member. I think the restriction is around unduly charging interest where we're taking advantage of someone or, you know, taking advantage of their precarious situation to charge an exorbitant interest rate.

We'd never want to do that, no matter who we're engaging with. Now, there's a second issue here related to, in my view, lending to family members. I realize you're doing it to be a blessing to him, and they're probably very grateful. I think the key is to make sure that something that was done in the first place to be a blessing doesn't become a strain on the relationship. And where that can come in is when we recognize that whenever we're loaning money to someone, there is a change in the relationship. The Bible describes that as a master-slave relationship. And so you just have to recognize that as soon as you loan the money, you're changing the nature of the relationship.

And where that usually goes sideways is either because there wasn't clear communication up front with regard to expectations, and that's why, even though it seems formal, I always recommend doing it in writing. But second, despite his best efforts, something may go awry in his financial life that is out of his control, and now we're in a situation where he can't pay you back. And it's not that he can't pay the bank back or the financial institution back.

He can't pay his dad back. Now, you may say, well, that's fine. I wouldn't mind, and I'd be willing to forgive the whole thing if I had to. Well, I think the key is that you go into that saying, if something like that happened, I'm ready, willing, and able to forgive it.

Now, let's say that doesn't happen. Now, how do we just handle his ability to repay it and whether or not you should charge interest? Well, again, I think you need clear communication as to whether or not you ultimately charge the interest that you communicated you were going to at the outset of the loan. I think that's entirely up to you. I don't think there's a right or wrong approach to that.

I think it's ultimately a personal conviction. And so whether you decide you just want to be able at the end of this to say, I want to bless you with a gift. I've been, you know, allocating the interest, but guess what? I just forgave it. I love you. Go about your way. Great. You say, no, I did this because I was earning interest in the bank and I knew it would be a blessing to you.

And so I'm going to I lended this to you at a reduced rate. Great. You communicated that upfront. There's no problem with that. Again, I think it's ultimately a conviction here on your part as to where you come down.

There's not a right or wrong. Does that all make sense, though? Yes, it does.

Yes, it does. I appreciate your insight into that. Absolutely, Chris. God bless you. I'm confident you're going to make the right decision here. I know this is a difficult one, but in either case, here's here's the end of the day where I'll finish. In either case, this has been a blessing to your son.

No doubt. Whether you come in at the end and say, guess what? I'm forgiven all the interest. Or you say I'm going to carry through with what we originally talked about, which is a reduced interest rate. You've enabled him to do something he probably wouldn't have been able to do, which is great.

And so I think now it's just kind of for you to think and pray through and decide where you want to go with it. Hey, thanks for being on the program today. You sound like a great dad and we can assist you further at any point.

Let us know. Let me say thanks to my team today. I certainly couldn't do this without him. I'm incredibly grateful for my good friend Jim Henry's providing research today. Devin Patrick, our producer and handling all of our call screening today. Dr. Robert Youngblood, for those gentlemen and the entire team here at FaithFi, thanks for being a part of the broadcast today. May the Lord bless you and we'll see you next time. Bye bye.