Finances/Budgeting

        

      

         It's time to create a budget and stop spending money, not knowing where it all went! A budget is an estimate of income and expenditure for a set period of time. We are going to focus more on a  MONTHLY budget just because that’s how frequent most of our bills are due. The importance of having a budget is a way for you to keep track of your money. If you don’t know what you’re spending your money on, you’ll never be able to see what you have been working for, or even save for things in the future. A budget also allows you to be smart with certain expenses. Maybe you noticed this month you spent more on eating out than you were supposed to, you’ll be able to figure out a game plan on how to spend less for next month. 

       From a Christian perspective, when creating a budget, your first priority should be tithing. Tithing is an opportunity for us to show God that He is first in our lives and to give Him back a portion of what He has given us, technically it’s all His. It is 10% (but not limited to, it can be more if your heart desires) of what you make. There isn't a clear scripture that says whether to tithe from your net or gross income. It is advised to tithe from your gross which is before taxes or anything else is taken out of it. This is one of the many ways of showing that God is your main priority.

     *Since we are budgeting on a monthly perspective let’s use the example of Suzy making $200 a week which is $600 a month.

     *For the month, $20 a week which is $80 a month should go to tithing. That leav her with $520 a month.

               After tithing, your next priority is making a realistic budget based on your necessary expenses. Create a budget where you have room to save but it doesn't lead you to constantly go into your savings to be able to pay for other things. Often times we think we can try and save more than half of our income a month but it just doesn't work like that. Even if the amount is as little as $50 a week, that will be about $1200 in six months so it all adds up. The best way to start a budget is making a list of all monthly expenses, starting off with bills and other priorities. For an example, Suzy who gets paid $600 a month has the following bills : $80 a month for tithing ,$90 a month for her phone, $120 for car insurance and she spends $40 weekly on gas which is $160 a month on gas. In total her “essential expenses" are: $450. That leaves her with $150 a month.

             Now that the important stuff is out of the way, the next category in your budget can be unnecessary expenses. This is really anything you want to put in and whichever amount you feel makes sense. It could be from eating out, maybe extra gas needed for unexpected places, even a little shopping. For that, Suzy puts away $100 a month, so $25 a week. She just knows that that is her limit a week if she wants to do extra stuff.

               Suzy is now left with $50 a month. THIS is what goes into her savings account each month. As you can see, it’s reasonable and it allows Suzy to afford everything without having to constantly go into her savings account. It seems like a little but like I said earlier, this “little” amount adds up long term.

*Try it out!! Make a list of your expenses for the month and specify each amount. Know your priorities and recognize your unnecessary expenses. After you've set this up, try putting it in a place where you'll be able to see it frequently and help you remember your limits. The more you organize, the more you save. Happy saving!