In Matthew 25:14-30, Jesus tells the famous parable of the talents. Jesus articulates how he views stewardship. Those who make the most of what they have been entrusted with are praised and given more. Those who do not leverage their blessings will have it taken away from them and given to someone who will. We need to ask ourselves whether we are truly multiplying our talents. If we are not, what is keeping us from multiplying? If you are not multiplying, chances are that you are not budgeting.

The first step to multiplying our talents is through budgeting. Budgeting requires discipline and vision. Budgeting forces us to limit our spending and prioritize. It is impossible to be a good steward if we are not accountable for what we spend. There are two critical mistakes that individuals and businesses make with regard to budgeting. First, many people exist in denial and never establish a budget. The other mistake people often make is establishing a budget based on their perceived future earnings instead of their actually earnings.

Any rational person would agree that you should not spend more than you make. Budgeting, saving, and investing are indelibly interconnected. Saving and investing do not happen without budgeting, and multiplying your “talents” doesn’t happen without saving and investing. If everyone can agree to these basic principles of personal finance, why is it that many Americans find themselves in debt? The answer is manifold.

First, we embrace assumptions that are not well founded. We assume that we will always have our current jobs making the money that we are making today. Therefore, we program our budgeting around the assumption that the gravy train runs indefinitely into our future. Even worse, some people, particularly young professionals, assume that their income will rise exponentially. If you are a bright young employee, you might assume that the corner office will be yours in a matter of a few years. If you are a young entrepreneur, you might think that your business will prosper quickly. Therefore, we spend as though we have already made it.

Assume that you will earn that corner office. Assume that your small business will be the next Microsoft. Make all of those assumptions, but budget as if you are one position behind your current position. I encourage everyone to dream and have a vision. However, it is critical that you budget as if you have not made it yet. When it comes to budgeting, establish the worst case scenario and budget towards that end.

If you live below your means, you give yourself a chance to prosper. If you spend as if you have already made it, you are essentially mortgaging your future earnings. When you take on consumer debt to fuel your lifestyle, you are doing it at the cost of the interest rate of your lender. By living today as if you have already made it, you are financing your future earnings which has the effect of discounting your future earnings. If you live one level below your current position, you are building a financial war chest which will provide you with the means to invest and multiply your “talents”. Budgeting this way also provides you with invaluable flexibility for the many curve balls that life will throw your way. Budgeting at one level below creates breathing space for you to be abundant no matter what your circumstance.

Save the difference between your job and the job below yours and invest that money. By doing this you create a savings safety net for you and your family. You also establish a lifestyle that you can maintain easily if you face the unfortunate event of being downsized. Having that breathing space allows you the luxury of time to make a wise decision regarding your career options instead of rushing into the first paying job offer. If you flourish in your current job and get promoted up through the organization, you have created a habit of saving and living below your means that will allow you to retire earlier than planned.

If you are an entrepreneur, your life is full of risks and fluctuating income. Budgeting below your means will allow you the flexibility to be aggressive in growing your business with minimal impact on your family’s lifestyle. Having cash in reserve allows you to grow your business without leveraging your company’s future earnings.

When creating a budget take into account those expenses that are out of the ordinary. You should take into account the expense of replacing or repairing an older vehicle or a leaky roof that needs replacing. Also calculate expenses that you encounter every year like clothing expense, emergency repairs, Christmas, and family vacations. Estimate how much you plan to spend on these items and when you will need to make the purchase, and set aside the money you will need for those items monthly. Create a savings account where you deposit funds for these occasions.

Whether you are a business owner or an employee, budgeting is the one sure way you can accomplish your goals without mortgaging your future. Setting limits for yourself is never fun, but it essential to growing your net worth and accomplishing your financial dreams. Establish a vision for your future. Live one level below your current job and budget accordingly. Put the difference away in a money market or savings account, and create a sound budget that takes into account known yearly expenses and unforeseen disruptions like unemployment or business downturn.

Taking these actions is difficult, but it is not as difficult as struggling to make ends meet. If your professional life turns out as you imagined, then you have reserve funds to reinvest in your business or serve as a safety net for your family. There is no more important job than providing for your family. Jesus tells us that we need to be good stewards. He also tells us that if we multiply what we have been entrusted with we will be rewarded with more. Budgeting is the first step in being good stewards. It sets the foundation for tithing, saving, and investing which is the cornerstone of stewardship. Embrace the practice of living below your means, and I guarantee that your life will be more abundant and stress free and full of “talents.”