Debt is killing pastors. Rural small church pastors are especially at risk because of the small pay packages that most rural churches can afford. Lets just say that pastor Billy is just graduating Seminary. Billy accepts a call to a small rural church. Billy is excited about his first pastorate but struggles EVERY day because the financial struggle takes a heavy toll on his family. Billy has consumer debt, student loan debt, and the every day bills we all have. Oh yeah. . . Billy also has two kids and a wife to take care of. Billy’s wife is taking care of the kids at home because the cost of day care would exceed her income. Here is what Billy’s income to debt ratio might look like.
1. Billy, like many of his church members, has more credit card debt than he should. $200.00 per month
2. Billy has a mortgage b/c the church doesn’t have a parsonage and even if they did have a parsonage Billy and his wife prefer to live in their own home. (Pastors like privacy and equity as much as the next guy.) $850.00 per month.
3. Billy, like most of his church members, has two car payments. $400.00 per month
4. Billy’s utilities shake out like this:
A. Electricity = $110.00 per month
B. Gas = $45.00 per month
C. Phone / Internet = $75.00 per month
D. T.V. = $60 per month
E. Cell Phones = $70.00 per month
5. Billy is still paying for his and his wife’s student loans: $300.00 per month
6. Since Billy and his family like to eat they go to the grocery every week: $600.00 per month
7. Fuel for the cars: $240.00 per month
8. Car Insurance: $70 per month
Total Expenses: $3,020.00 per month or $36,240 per year
Pay package for a Tennessee Church running 50 -100 people in Sunday School: $41,785 per year
$41,785.00 – $36,240.00 = $5,545.00
$5,545.00 represents what is left out of Billy’s pay package to purchase health insurance, ministry reimbursement, ministry tools, and continued education costs.
Billy’s options: 1. Billy’s wife reluctantly works two jobs. One to pay for day care and one to pay bills. 2. Billy works another job (if his church will let him) but this takes time away from ministry. 3. Billy is forced to resign and go to a suburban church with a suburban pay package.
What’s the answer to this?
Darby,
Education is the answer. Our pastors need to understand that the borrower is always slave to the lender. Being out of debt is the only reason I can stay where I am now. Frankly, our churches need to pay pastors better or be okay with their “full” time guy being bi-vocational. The only guy that can bring churches to that point is. . . the pastor. He has to be patient and willing to tough it out.
Billy needs to man up
. His debt isn’t that bad and his salary isn’t either! Oh and his wife needs to swallow her “reluctance” and help support her family (welcome to the real world lady).
I speak from experience not out of insincerity. My situation, without going into details, is about the same or a little worse than Billy’s (not sure if he is hypothetical or real).
First, why does Billy’s wife have to work two jobs? Billy needs to watch the kids while she’s working her job (which should bring them health insurance benefits).
Billy is already nearly $6,000 positive not including his wife’s take home pay. That 6,000 should be plenty for attending a conference or two, buying books throughout the year, and maybe even taking a course (he’s done w/Seminary so why’s he taking classes?) (ps avg course cost is about $300/credit hour or $12-1500/course).
Billy’s making out like a bandit really. His wife’s job is bringing great benefits and all her take home money should be savings, or investment. After taxes and insurance for the family she’s probably bringing home at least $150/wk or $600/month. That’s another $7,000/yr. (His consumer debt is paid off in no time at that rate and $200/mo put back in his pocket)
Also, in a 50 member church, it’s not unreasonable to think that Billy could Deliver Newspapers in the AM or get a job on the side. I don’t like this option myself but for a time it would be reasonable. I make $900/mo doing this. That would add another $10,800/yr to help him knock off School Debt and that Ugly Mortgage. At that rate he should accomplish that goal quickly and then quit the second job.
I sound a bit unsympathetic, but I’m actually in Billy’s shoes. I pastor a 20-30 person congregation. The salary is what they can afford. I deliver 250 newspapers every morning and my wife works at the local hospital part-time and with that comes benefits.
Financially, we break even. Our debt is way worse than Billy’s (a combined $1200/mo when consumer, student loan, and vehicle are considered). At the end of the day we don’t have money for “ministry tools” or “furthering education” (That’s what library’s are for).
The reality! In my case and in Billy’s case if he were to pay off his debt, he’d be just fine. That debt is not the church’s responsibility, it’s Billy’s.
Also, Billy needs to realize that most people in his congregation and in his community are in the exact situation or worse off than he is. He needs to recognize that, humble himself, and start a financial planning course where he himself is the prime example of how to get debt paid off and how to manage money. He needs to walk through this alongside his flock.
This will allow him to free himself from debt, and connect w/his congregation. It will also make his need known, and may spark the interest or generosity of those who are better off.
Get angry with me if you want… but the answer to this is toughen up. If Billy goes to the secular world he’s not going to be any better off. Mcdonald’s isn’t paying 40,000/yr these days and in this economy no one’s hiring anyway. Count your blessings, name them one by little one
.
Why would I be angry with you? Debt and money management seem to elude many pastors. . . thus the post. I have walked in your shoes and our hypothetical friend Billy. I still have to mow lawns and watch the kids while my wife works as a photographer. The call of God on our life keeps us where he put us. I pray God continues to help you and I both to “man up” as we are used for His purpose and His glory.
Billy is not living within his means. They can get rid of TV as a bill. They can’t afford two cars, so why do they have them? Save up that $400 a month and live with a car you can actually afford. Only your pride will suffer. This young family appears to continnually be making choices that further their lifestyle of debt. If you can’t afford it…don’t buy it! How is a pastor ever going to preach on the issue of Debt and finances when he is unable himself to live according to Biblical principles?
Billy’s next class should be in something along the lines of Dave Ramsey’s Financial Peace University.
As a rural pastor myself, I would also stress the importance of another local pastor coming alongside Billy to offer support, mentoring and accountability.
That is good stuff Scott. Many of the guys I talk to (rural pastors) do not have any sort of mentor. Ramsey’s book is a fantastic resource. Unfortunately there are a lot of “Billy’s” out there who never even seek help. Thanks for the input.