"The 7 Baskets System"
is a budgeting method that can be used to manage money in a way that aligns with biblical principles according to
Genesis 47:24 where its says
"But when the crop comes in, give a fifth of it to Pharaoh. The other four-fifths you may keep as seed for the fields and as food for yourselves and your households and your children.”
This prinicple involves dividing your income into different "baskets" or categories, each with a specific percentage allocated to it. In this we serve the Lord through good stewardship.
Basket 1: House
This is your “House” basket. Your “House” can be a word to describe your quality of life and household. Consider this basket dedicated to expenses that are FIXED and more required for quality of life. These expenses typically aren’t able to be reduced very easily and can be determined by other factors. These include things such as your mortgage or rent, property taxes, home maintenance costs, insurance, and overall cost of living and expenses.
"By wisdom a house is built, and by understanding it is established."- Proverbs 24:3 (NKJV)
When we establish our cost of living, we can better understand how much seed is required to be stored away. We understand the exact amount needed to live and where we can remove expenses or reallocate seed overages elsewhere. By allocating a percentage of our seed to this basket, we are sowing wisely into our food, shelter, and livelihoods. We all need to have a place to live, food to eat, and a place of safety; this is its own expense and a very important basket.
Basket 2: Storehouse
This is your “Storehouse” basket. Bring everything into the storehouse for safety and protection. This basket is dedicated to SAVINGS, for emergency funds, retirement, other stores of wealth, and other long-term savings goals.
"Dishonest money dwindles away, but whoever gathers money little by little makes it grow."- Proverbs 13:11 (ESV)
This particular basket starts off as a smaller percentage and then increases over time as the “weeds and pests” (aka: debts) are removed. You begin with always paying something into this basket that fills the need of both emergency and savings. As you fulfill those needs, you start to build additional savings and focus on long term goals. Little by little, this basket will get larger and you will gain the necessary skills to manage it wisely.
Basket 3: Tithe
This is the “Tithe and Offering” basket. This basket is dedicated to giving your TITHE and offerings.
"Bring the full tithe into the storehouse, that there may be food in my house. And thereby put me to the test, says the Lord of hosts, if I will not open the windows of heaven for you and pour down for you a blessing until there is no more need." – Malachi 3:10 (ESV)
This basket is the most important basket you can fill. This basket is where you will account for the funds you are going to use to sow into the kingdom and partner with God. This basket can always increase but starts with the tenth (10%).
Basket 4: Head of House
This is your “Head of House” basket, commonly referred to as DISPOSABLE INCOME. This basket is dedicated to the head/heads of the household, to be a reward for managing your house well and good stewardship.
"One who is faithful in a very little is also faithful in much, and one who is dishonest in a very little is also dishonest in much. If then you have not been faithful in the unrighteous wealth, who will entrust to you the true riches?" – Luke 16:10-11 (ESV)
This basket starts out at a small percentage and grows over time as your fields are increased. This basket is especially important for your well-being and personal growth of the head/heads of the household, allowing peace of mind when using this basket to reward yourself/selves. This basket is the one you use as you reward yourself along the way with those small milestones and victories. This is also known more commonly as a type of disposable income. In this basket, if you don’t have the seed in it, then you don’t spend it!
Basket 5: Field
This is your “Field” basket. This basket is dedicated to INVESTMENT and FUTURE OPPORTUNITIES, planting seeds for a great harvest, that the yield can be later replanted to increase your future harvests.
"The point is this: whoever sows sparingly will also reap sparingly, and whoever sows bountifully will also reap bountifully." – 2 Corinthians 9:6 (ESV)
This basket is the second-most important basket to increase. This is the basket you will use to sow seeds and increase your fields, which will later produce greater and greater yields allowing you to expand. This is your basket for assets and accounts that yield interest! You will need to allocate something to this basket, and ideally, if possible, you want to start at 10%, but this is not always possible, so you need to start where you are. God will increase what you have, not what you don’t. God can take the 1% and turn it into the 1000%.
Basket 6: Trade
This is your “Trade” basket. This basket is dedicated to expenses that are more DISCRETIONARY in nature, and although convenient to have, not always necessary. These costs can be reduced easily, and even removed/ paid off. Such as credit cards, the newest phone, streaming services, new vehicle loans, etc.
"The prudent see danger and take refuge, but the simple keep going and pay the penalty." – Proverbs 22:3 (ESV)
This basket helps you stay prudent and not overspend or under save. This basket is where you add up your monthly expenses and allocate the percentage required from your income to this basket. This is the first basket and easiest basket to minimize and reallocate. This is the basket where the weeds (debt) tend to grow most often and in greater amounts.
Basket 7: First fruits
This is your “First fruits” basket. This basket is dedicated to setting aside the percentage of YOUR INCREASE each year, as the first fruits of your harvest.
“Honor the Lord with your wealth and with the firstfruits of all your produce.”- Proverbs 3:9 (ESV)
This is the basket you use to show your thanks to the Lord for the increased harvest in your life. This is where you establish who is first and Lord in your life.
"The 7 Baskets principle" is a way to align the stewardship of your finances with biblical principles and to manage expenses, creating an easy way for you to see where your finances are going. This allows you to be flexible and gives you the ability to reallocate seeds as needed and prepare for pitfalls and life’s storms.
In conclusion, "The 7 Baskets System" is an effective way to align your budgeting with biblical principles, it allows individuals to prioritize their expenses and make sure they are using their money in a way that aligns with their values and goals. It's important to remember that these baskets and percentages are not fixed and they can be adjusted as the individual's life circumstances change.
