*“Come now, you who say, ‘We will go into such and such a town and trade and make a profit’— yet you do not know what tomorrow will bring.”*

That passage in James 4 teaches that only God knows the future. However, we should still plan and set priorities for whatever may come.

There’s no question that many are feeling uneasy about the future. Rising inflation and interest rates and the rollercoaster stock market have people concerned. 

You don’t know what the future holds and that just means you should prepare and set certain priorities for managing your money. Not all of these will apply to everyone, but there’s probably something in this list for everyone.

__1. If you’ve been procrastinating about getting out of debt, now’s the time to buckle down and do something about it.__ Interest rates on credit cards and variable rate loans like HELOCS are sure to rise, and keep rising, at least in the near term. Make paying down consumer debt an absolute priority.

You can avoid the sting of rising credit card interest by contacting Christian Credit Counselors. They have pre-negotiated agreements in place with credit card issuers to lower your interest rates, and you can take advantage of them when you sign up for a debt management plan. They’ll help you get rid of credit card debt up to 80% faster than trying to do it by yourself. You can get more information at __[ChristianCreditCounselors.org](http://ChristianCreditCounselors.org)__. 

__2. The next priority, and this affects everyone, is budget tweaking.__ If you haven’t downloaded the free __[MoneyWise app](https://www.moneywise.org/learn)__ yet, do it today. It offers three different ways to budget your money. One will be just right for you.

As you set up your budget, you need to account for inflation. The price of just about everything is going up. The latest government data shows that the price of personal consumption items, things like food and fuel, have shot up around __[6%](https://time.com/6149790/us-inflation/)__ from last year. You’ve seen that with your own eyes at the grocery store and gas pump.

Unless you received a raise of 6% recently, you’ll have to make some adjustments. Can you trim something from the entertainment category? Give up a few meals out each month? Maybe plan your errands more carefully so you avoid unnecessary trips, saving on gas?

Another way to make up a budget shortfall is by shopping more carefully. Take advantage of weekly sales and coupons at the grocery store. For online purchases, use an app like Honey or Capital One Shopping to find the best deals and coupon codes.

__3. If you’ve done all that and find you now have a few extra dollars, don’t throw a party.__ Rising interest rates on loans means banks may soon offer higher rates on savings, so use the extra cash to beef up your emergency fund.

__4. No emergency fund? That’s certainly a priority and now’s the time to start one.__ Open a savings account at an online bank like __[Ally](https://www.ally.com/)__, __[Markus](https://www.marcus.com/us/en/savings/high-yield-savings?prd=os&chl=ps&schl=psg&cid=1897659318&agp=71134111340&cre=481084204252&kid=markus%20bank&mtype=e&adpos=&gclid=Cj0KCQjw29CRBhCUARIsAOboZbJIKRNioqVqL6KbLA8jnzaLgcih8Qb1NX42g5ORTg1cpXNXeW3etlYaAiISEALw_wcB&gclsrc=aw.ds)__ or __[Capital One 360](https://www.capitalone.com/bank/savings-accounts/online-performance-savings-account/)__. Start tucking away something from every paycheck. Set a goal of $1500. Then one month’s living expenses. Eventually, you want to have 3 to 6 months’ worth of living expenses. That way you’ll be able to ride out a job loss or medical condition that prevents you from working for a time.

__5. Take advantage of an IRS rule for 2022 that allows you to save an extra $1,000 in your 401k or 403b account.__ The new contribution limit, which is tax deductible, is $20,500.

__6. The next priority is for prospective home buyers, especially those looking to purchase their first home.__ Don’t let rising interest rates keep you from buying a home if you're prepared to do it.

You should have 20% saved for a downpayment to avoid private mortgage insurance. You also need to work up a budget that reflects your total housing costs, including mortgage. It should be 25% or less than your income.

You also need to decide on a house you can afford within that budget. It will be less than most lenders are willing to lend you, so don’t get carried away. Keep your payments within your budget, not the bank’s. If you meet all those criteria, it may be wise to buy now, since interest rates are expected to continue rising in the months ahead.

__7. The last priority involves your job.__ For over a year, we’ve been experiencing what the analysts are calling [The Great Resignation](https://www.investopedia.com/the-great-resignation-5199074). Huge numbers of people have left their jobs to find something better. That means employers everywhere are looking for folks to fill those slots.

It’s an unprecedented time to ask for a raise or promotion, or to look for another job with a different company. Make the most of it. Start by updating your resume to reflect your current duties, skills and achievements. That will prepare you to negotiate a raise or promotion, or to land a new position elsewhere.

Those are your priorities for the uncertain times we live in. We hope you’ll find them useful. Above all, don’t fear the uncertainty of the future. Remember Jeremiah 29:11, *“For I know the plans I have for you, declares the Lord, plans for welfare and not for evil, to give you a future and a hope.”*

You can also __[listen](https://www.moneywise.org/search?q=Top%20Money%20Priorities&videos=true&articles=true&podcasts=true&posts=true&groups=true&events=true&support=true)__ to the related podcast on this topic.

FaithFi

Articles

James 4 teaches only God knows the future. However, we should still plan and set priorities for whatever may come.

MANAGE | Mar 22, 2022

Top Money Priorities

By: Rob Wests and Jim Henry

Where Faith Meets Finance

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