“The plans of the diligent lead to profit as surely as haste leads to poverty.” Proverbs 21:5
Budgeting is all about having a purpose and a plan for your money.
So, you are telling your money where to go and what to do. Yet, many see this like a child being in trouble on a restriction, hence you will not be able to do what you want to do. But, this is not true. It is actually freedom that will help you achieve your goals like getting out of debt, paying off your home or buying a home, and saving for retirement. As a Result, your hard work making that money does not go to waste.
Having a plan to spend your money, purposefully is not hard to do, and it will make your life so much easier!
Instead of thinking of a budget as a negative thing, remember that a budget is simply a “game plan” or a financial plan. We need to have money to live in today’s society. Because money is a necessary aspect, a tool that we need to create, apply, and follow the plan. In doing so, we can be wise stewards with what God has blessed us, and we can competently handle money, time and things—all gifted to us for the glory of Our Lord. A well-designed budget considers necessities, generosity, and desires and benefits everyone—you, your spouse, your family, your friends, even strangers!
How do we do this? You need to have a plan. This starts with a biblical concept of how to deal with your money and debt.
- First, know your total income (what comes in).
- Then, count all of your expenses (what goes out).
- Then, remember that a budget does not limit your freedom; it gives you the freedom to succeed!
Here are some helpful tips on making a budget:
- Start with the most important categories first. That is food, housing, utilities, transportation. Then add in things like clothing and other needs. Not “wants,” keep in mind what you actually need.
- Keep a small notepad and keep a record of all spending. Then check your credit card and bank statements. What is unnecessary, what do you spend too much on, what is overlooked?
· If married, always do the budget together, as it is our money.
- Every month will be different, because you have birthdays, car repairs, trips and
· Pay off your debt, this needs to be a priority.
- Track your progress, write it out or have a spreadsheet.
- Watch out for daily lunches, coffee places and your grocery spending. This is where most people waste a lot of money.
· Do not forget to create a cushion in your budget for unexpected expenses, like a car repair.
· Cut up your credit cards!
The goal is to always make sure the income is greater than the expense. Kindly and honestly communicate with each other to make sure that you are both aware of the reality and work from there. Put the plan on paper and discuss it together.
Now, once you have a plan you can work on paying off bad debt, create and emergency fund, at least 2 to 3 months of living expenses. Then, save for your children’s college and retirement, think Index Funds for that. Then, pay off your home early and build wealth and do not forget about giving!
“By wisdom a house is built, and through understanding it is established; through knowledge its rooms are filled with rare and beautiful treasures.” Proverbs 24:3-4
You are a money manager for God as it all belongs to Him, and we work for Him!
Here is how to make a budget: