Begin Budgeting

 

    Why should you budget?  Budgeting is the road map to financial freedom.  It simplifies your life.  It gives you control over your money instead of your money controlling you.  Budgeting starts with an estimated budget and then working out what your month should look like on paper.  Remember to keep it simple.

    If you have software or already created an excel or google spreadsheet, then enter in the numbers that you have calculated for your monthly income and expenses in the top row that does not change for the year.  the first column should be 1-31 for the days of the week.  From there you will put in the cells what you spend on what day.  For an example:  Mortgage would go under Housing and the day you paid it.  It is kind of like battleship.  The very row after 31 should be all the totals for each column.  The row after that should calculate if you went over or under.

    Under Income, you should enter your gross income.  The Column after income should be taxes, then 401K, medical insurance that comes out of your pay check, tithe/giving, then housing, food, transportation, other insurance, debts, entertainment/recreation, clothing, savings, medical, miscellaneous, other investments, school/childcare.  You can add or take away as needed for your personalized budget.

    When you are done with entering all the numbers, look at what your gross income is.  Then, highlight all the other numbers beside it to make sure that it comes to the same number.  If not, then something needs to be adjusted.  

    Once you start entering your spending, the calculations should do all the work.  Remember to keep an eye on the bottom to not overspend.  If you have spent your budget in that area, then anything else needs to wait until next month in that area.  For an example clothing.  If you budget $25, then you may only be able to buy one article of clothing a month.

    Spending is done through bill pay, apps (Venmo, velle, cashapp), google pay, wire, check, debit card, or credit card.  Using a credit card is okay if you are able to pay it off every month.  You are not the type that can do that, then you need to cut up your credit cards before they get you into any more trouble.  The important thing is that you can account for your spending and hold your self accountable.  

    You enter the day you spent them money, not the day it cleared your account.  You use your check registry.  If you do not keep up with on, then I recommend making it the first tab in your budget.  In the beginning of budgeting, go in every day for the first few months to enter payments.  As you get to really understand your spending habits and start getting rid of debt, you can start focusing on your budget about once a week.  I recommend looking at your bank account(s) daily.

     Use your credit card statement to enter in items each month into your budget.  The third tab is recommend to enter your totals for each month.  Have it calculate your annual total and your averages.  It will help with the big picture and setting the budget for next year.

Deuteronomy 15:7-11, Proverbs 3:9-12, 13:11, 22:7-8, Ecclesiastes 5:10-12, Malachi 3:8-12, Luke 14:28-30, & Hebrews 13:5-6