How to Budget Your Money
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Did you know God cares about how we manage our money? I remember applying for my first credit card. I was 18 or 19 years old. Completely naive and I was living on my own. I didn’t know how to “budget your money”, but I did have a full time job, a new car and all the expenses associated with all of that.
With time, my car needed maintenance done to it, to help keep it running smoothly, which included tires. I didn’t have the money for new tires and didn’t know, at the time, about used tires so I applied for a credit card to help me pay for the upkeep of my car.
In my head, I rationalized getting this piece of plastic. I told myself it was a need. I qualified, bought my tires and was on my way.
I hardly used the credit card but for rare times when I felt it was “needed”. I still have it today, but usually keep it at a zero balance. See, I was raised in a home where my parents didn’t use credit cards that often.
They handled their finances wisely. They paid cash for most of the things they bought. I’m fortunate to have a husband that came from a similar family background when it came to debt and staying out of it.
How to Budget Money
I am so thankful that I am currently debt free. No car loan. No student loan. No credit cards. No debt. It takes sacrifice, but I believe it is totally worth it.
My philosophy is to always pay cash for things I want. If I do not have the money to pay cash then I can not afford it. Simple. I save money for the things I would like to purchase.
Do we have a big screen tv? No
Do we have brand new cars? No
Some items we purchase second hand, like kids clothes. They grow so fast!
Every time we get a paycheck, we go over our simple budget. Groceries, bills and gas money get paid first. Anything else is discussed as a family on whether to purchase now or wait. Of course, we budget in a date night here and there, if we can afford it. All left over monies, if any, go in to the savings account.
We do not keep up with the “Jones’s”.
We do not spend over our income.
All our needs are met. We have a cozy home, two vehicles, two laptops, a tv, internet, cell phones, plenty of food on our table and clothes on our back.
Spending more money than what you bring in will lead you down the dark road of out of control debt.
Of course, we could go out and get the bigger, nicer TV, car, home, add a boat in there and then some but we would rather not have the added stress and burdens that, being in that amount of debt, brings along with it.
Let’s say you can comfortably make all those monthly payments for the things you have purchased on credit. That’s great your job pays so well, but what if tomorrow you get in an accident and had to be out of work for several months to heal?
Or What if the company you work for goes under or downsizes? No one is beyond the hardships of a layoff. Are you prepared?
God forbid those situations would occur to any of us, but life happens and we should be intentional about being prepared for the security of our family.
Some financial experts suggest having a 3 to 6 month emergency fund for such hardships in life. Do you know how much it would take to pay all your bills and provide for your family for 3 months?
If so, do you have that in your savings account? If not, then you can not afford the stuff you are purchasing on credit.
I know this probably sounds backwards and maybe a tad harsh. I understand in today’s society it is shoved down our throats and widely encouraged to buy bigger and better than everyone else around you.
However, who is there to help with the spiraling out of control debt problems?
How do you manage money biblically?
Money Tips From the Bible
- Pray! Ask God for wisdom in how to manage your money.
- Set Priorities. Proverbs 24:27 – Put your outdoor work in order and get your fields ready; after that, build your house.
- Make a Budget.
- Build an Emergency Fund.
- Avoid Debt.
- Diversify Your Investments.
- Reduce Risk as You Age.
- Make a Financial Plan.
What does the Bible say about loving money?
A popular current text, the King James Version shows 1 Timothy 6:10 to be: For the love of money is the root of all evil: which while some coveted after, they have erred from the faith, and pierced themselves through with many sorrows.
I have a printable Financial Planner, that we use regularly, to help us see where our money is going and what we are doing with it. I would like to share it with you. Click on image below to get your Printable Financial Planner.
Do you love paper planners!? This is a PRINTABLE Financial Planner. It can help you keep track of your bills, income, savings plan, debt snowball tracker and more. This is 16 pages plus the cover page. Buy this printable for only $8.00!!
Follow these steps to put a solid budget plan into action.
- Calculate expenses. Your first order of business is finding out exactly how much you’re spending each month.
- Determine your income.
- Set savings and debt payoff goals.
- Record spending and track progress.
- Be realistic.
How do I make a monthly budget?
Here’s how to create your monthly budget.
- Budget Before the Month Begins.
- Identify Your Income.
- Enter Your Fixed Expenses.
- Enter Your Common Monthly Expenses.
- Be Month-by-Month Specific.
- Budget for Your Money Goals.
- Always Use a Zero-Based Budget. …
- Things to Remember When Making Your Monthly Budget.
It’s time to take baby steps to get out of debt. Be patient with yourselves.
If you have any questions about the simple budgeting tool, please do not hesitate to ask.
I strongly encourage you to Pray over your finances and ask God to give you discipline and wisdom in handling your money in a way that honors Him.
Have you paid off any debt lately? Share in the comments below so we can congratulate you!
More than blessed,
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