The Pastor’s Guide to Personal Finances: Budgeting, Saving, and Investing on a Ministry Salary

Pastors are called to shepherd their congregations—but too often, no one’s shepherding them when it comes to money.

Whether you’re a senior pastor of a large church or a bi-vocational leader at a small-town congregation, navigating personal finances on a ministry salary can feel…complicated. It’s not just about numbers, it’s about calling, stewardship, and sustainability.

Scripture shows us money isn’t just a personal issue, it’s a spiritual one. 

• Luke 16:10: "Whoever can be trusted with very little can also be trusted with much." Stewardship starts small.
• Proverbs 22:6: "Train up a child in the way he should go..." The habits you build today ripple through your family and community.
• Matthew 25 (Parable of the Talents):  We’re each entrusted with resources. The question is: will we bury them, or put them to work?

My hope for this article is to provide pastoral staff a real-world, practical approach to managing money well—with clarity, confidence, and peace of mind.

Let’s dig in.

How Much Do Pastors Actually Make?

It’s a question a lot of people wonder about — including pastors themselves. According to Tithe.ly’s Church Staff Salary Guide for 2025, the average senior pastor salary ranges from $50,000 to $150,000, depending on church size and location.

Here’s a quick snapshot:

• Small churches (under 100 attendees): ~$50,000–$75,000
• Medium churches (100–500 attendees): ~$75,000–$100,000
• Large churches (500+ attendees): ~$100,000–$150,000

Of course, many pastors also receive housing allowances, health insurance, and other benefits, but for most, the paycheck isn’t huge. That’s why having a solid personal finance plan matters.

Budgeting for Pastors: Use the 70/20/10 Method

The first step to a strong financial plan is to simply gain a better understanding of what is happening with your money. 

Budgeting doesn’t have to be tedious, or boring. You definitely do not need a CPA level spreadsheet. Keep it simple - use a financial tracking app, a basic spreadsheet, or even grab a piece of paper and a pencil. 

Doesn’t matter how you jot down your budget, the goal is to better understand your revenue and expenses.

Start with the 70/20/10 budget. It’s a simple, flexible framework that makes sure your money is working for you — not just flying out the door.

Here’s how it works:

70% Needs + Lifestyle

This is your everyday life stuff. 

Mortgage or rent, groceries, gas, kids’ shoes (because they grew again), insurance, and all the other things that keep your household running. It also includes some lifestyle expenses — dinners out, streaming services, the occasional date night. 

The goal here isn’t to cut to the bone. It’s to make sure your core needs are covered in a way that still feels human.

20% Savings + Debt Payoff

This bucket is for building your future. 

If you don’t have an emergency fund, start there — aim for at least 3–6 months of expenses. Got high-interest debt? Chip away at it here. No retirement plan through your church? Open a Roth IRA and automate a monthly contribution. 

This 20% is how you create margin and momentum.

10% Giving

Whether it’s tithing back to your church or supporting missions, nonprofits, or someone in your community — this is the heart piece. 

If 10% isn’t realistic right now, start smaller. The point is consistency, not perfection.

The beauty of the 70/20/10 budget is that it’s scalable. Whether you make $50K or $150K, it gives you a balanced approach that covers today and builds for tomorrow.

Saving: Build Financial Breathing Room

If you’re serving in ministry, there’s a good chance you’ve put others first for a long time. 

But here’s the truth: building up savings isn’t selfish—it’s smart. It’s a way of making sure you can keep showing up for the long haul, without running on fumes.

Start with an emergency fund. This is your buffer when life throws a curveball. A car repair, a surprise medical bill, or a month when giving dips. Aim for at least 3–6 months of expenses. It might take time to build, but every dollar adds stability.

Keep your emergency funds in a high-yield savings account or a certificate of deposit (CD) to maximize your return while still keeping your funds accessible. Both of these products typically carry higher interest rates versus normal savings accounts. If you go the CD route, consider a CD ladder as it allows you to more easily access portions of your emergency fund while taking advantage of the higher interest rates.

Next, think about short-term savings goals. Want to take your family on a vacation? Replace that worn-out water heater? Cover back-to-school shopping without stress? Create labeled buckets in your savings account and contribute to them little by little.

Finally, don’t forget long-term savings. If your church doesn’t offer retirement matching or a formal plan, that’s okay. You can open a Roth IRA or traditional IRA on your own and set up automatic contributions. Even $50 or $100 a month adds up more than you think.

A quick pro tip: automate your savings just like a tithe. Let your bank transfer it right after payday — one less thing to think about, one more step toward peace of mind.

Spend with Intention (Not Just Restriction)

Let’s flip the script: stewardship doesn’t mean cutting every corner — it means choosing your corners wisely.

Intentional spending is about aligning your money with your values. It’s not about squeezing every dime or feeling bad for enjoying your life. It’s about asking, Is this spending helping me live the life I’m called to live?

That might look like:

• Prioritizing family experiences over upgrades—choosing the zoo pass instead of a new phone
• Cooking at home most nights. Not out of guilt, but so you can save for a weekend getaway
• Spending on tools that save you time. For example, paying someone to cut your lawn during a busy sermon series. I’d ask around your congregation, I’m sure you’ll be able to find someone looking to make some extra money.
• Give every dollar a job, but make sure some of those jobs include joy, rest, and connection.

Money is a tool. When you spend it on purpose, you build a life that’s sustainable and meaningful — not just frugal.

Investing: Make Your Money Work for You

Let’s be real — pastors aren’t just spiritual leaders. You’re also parents, partners, neighbors… humans who need long-term financial stability. 

That’s where investing comes in.

Investing isn’t about getting rich quick. It’s about using the time and resources God’s given you to create financial breathing room down the road.

Start small. Start now.

Here’s what that might look like:

• Open a Roth IRA. Even if your church doesn’t offer retirement benefits, you can take control. Roth IRAs grow tax-free, and they’re one of the easiest ways to build long-term wealth on a modest income.
• Use low-cost index funds or ETFs. You don’t need to pick individual stocks or time the market. Broad-market funds spread out your risk and steadily grow over time.
• Automate it. Even $50/month adds up. Set it and forget it, and let compound interest do the heavy lifting while you focus on ministry.
• Stay the course. Investing is a marathon. There will be dips, but the long game is where real growth happens. Don’t let short-term noise shake your long-term plan.

A quick example:

Let’s say you you invest $50 per month for 20 years in a U.S. index fund (like the S&P 500) with a historical average annual return of 8%. 

In 20 years, you would have personally contributed $12,000. However, your portfolio value would be just shy of $30,000. That’s more than double your total contributions — thanks to compound growth.

If you stretch it to 30 years? That same $50/month could grow to $56,700.

Even small, steady investments can add up to serious long-term impact — especially when you start early and stay consistent. And you don’t need to be an expert — low-cost index funds and automation do most of the work for you.

Once you’ve mastered the basics, seek out additional ways to grow income — maybe through a small rental property, a writing or speaking side gig, or other passive income streams that align with your calling.

When Ministry and Money Collide

Let’s be honest — money is weird in ministry.

You’re expected to lead with humility, steward resources well, and sometimes operate under the microscope of public opinion. That’s a lot to carry.

But you can honor God with your money and build a sustainable life.

Budgeting doesn’t need to be restrictive. Saving isn’t selfish. Investing isn’t greedy. And being intentional with your money can free you up to lead better, live healthier, and serve longer.

Take small steps. 

Build habits.

And remember, you don’t have to do this alone, or have it all figured out overnight.

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