Let's be honest, being in ministry is usually not a high paying job. Because of that, it's super important to handle what money you do make well. That will allow you to take care of your family and yourself while not being a burden on your church.

When you don't handle your finances well, you end up thinking you need way more money to survive than you actually need. That causes you to feel under-payed, undervalued, and, in many cases, pastors leave ministry all together as a result.

That doesn't have to be your story! If you grasp these 5 principles of managing your money well, you will realize that God has provided you with more than enough to not just survive, but thrive when it comes to your finances.

A quick side note, these 5 principles are heavily influenced by Dave Ramsey so go check him out!

Here are 5 keys to succeeding with your finances as a worship pastor:

Disclosure: This post may contain affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.

1 | Give

It seems backwards but if you want to get your finances in order, it starts with giving some of it away. Getting your finances under control starts with recognizing who your money belongs to in the first place - God.

A great place to start is allocating 10% of your income to go directly to your church.

That seems like a lot when you first start but the truth is: if you can't live on 90% of what you make, you won't be able to live on 100% of what you make either.

This is the first step in organizing your finances because it causes you to start prioritizing what's important in your life. It starts with God and goes from there.

2 | Budget

Most people let their money tell them where it's going to go - "I've got a credit card payment due tomorrow. Then, I've got a car loan payment next Thursday"... and so on. But when you're in control of your money, YOU tell IT where to go. The only way to make that happen is to set up a monthly budget.

I recommend using the Every Dollar app. At the beginning of every month, create a budget that gives EVERY DOLLAR you make a job. Tell it where it's going to go. 

3 | Debt-free

It's amazing how much money you have when you aren't constantly giving it to someone else. Student loans, credit cards, consumer debt, car loans, etc... It's a perpetual cycle of debt - which really means you're constantly giving your money to someone else.

This cycle of debt will never be broken until you decide to break it! Use that budget you just created and find extra money that you can use to pay off your debt.

Think about it, add up your monthly payments on every debt you have - student loans, car loans, credit cards, etc. The average household has an average debt of $137,058. That means the average family in America pays roughly $1500 a month towards debt. Chances are that's your story too!

Now imagine being debt-free. What would you do with that extra $1500 a month? That's an extra $18000 a year! That can become a reality for you if you're willing to put in the work now to reap the benefits later.

For more information on this process, check out Dave Ramsey's baby steps!

For even more information, check out The Total Money Makeover by Dave Ramsey. I can’t recommend this book enough. It lays out an exact plan that let’s you win with your finances!

4 | Save for retirement

After you are debt free, it's time to start thinking about the future.

If you work in a smaller church, you most likely don't have a retirement plan set up for you.

That's a key difference between working in a church and working in a secular job. Secular jobs have 401ks set up for their employees or pensions - this money is typically automatically withdrawn before the employee even sees it.

Church leaders don't have that luxury and, therefore, it takes a bit more discipline to save for retirement.

So how's it happen? Let me introduce you to the Roth IRA.

Essentially this account is a retirement account you can set up for yourself where the money grows tax-free.

Time is your friend when it comes to saving for your retirement. I know a lot of you in the Leading Worship Well community are 35 and under so don't put this off! Let me quickly show you the math.

If you start investing in a Roth IRA at the age of 25, putting in the maximum contribution of $5500 for the next 40 years and retire at 65. Assuming at a yearly average yield of 10% on your investment, you will have 2.6 million dollars when you retire.

Don't believe me? Plug it into the calculator here!

Worship pastor, you can retire with dignity if you start investing today!

And by the way, if you're older and time is running out for retirement, there is still hope for you too! It doesn't matter your age, just start investing once you're debt-free!

5 | Build up an emergency fund

The last principle is all about preparing for disaster. When your car breaks down and you have to pay $1500 to get it fixed, or when you find out you need surgery, or if you lose your job - what are you going to do?

Most people turn to debt when disaster strikes - they throw the expense on a credit card or take out a loan and figure they'll pay it off eventually.

Don't let debt be your safety net! Build an emergency fund instead!

An emergency fund is 3-6 months of expenses. This is a bubble between you and the world. If something happens that you don't have the money to pay for, this is where that money comes from.

When you have an emergency fund, you find that there are a lot less emergencies in life. Those emergencies are simply inconveniences because you've already prepared for them.

After you're debt-free, save up an emergency fund of 3-6 months of expenses and put it away for the future!

For more info on emergency funds click here!

THAT'S IT!

That wraps up the 5 principles you need to handle your money well as a worship leader. 

I really can't recommend The Total Money Makeover by Dave Ramsey enough - it's a great book to get you started in the world of personal finance. 

Let us know any questions you have in the comments below about finances or any thoughts you have on the subject! We'd love to hear from you!

Disclosure: This post may contain affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.