Financial Integrity

 

    A big part of having financial integrity is creating and living by a budget.  However, if you don't know where to start, then list what you make and all your debt.  This will help you see if you are over spending causing a deficit for yourself or if you have money to save for emergencies.

    Your living expenses are based on your net income.  If your income is greater than your expenses, then you have a surplus.  This is good.  It means you control your spending.  Your next decision is what to do with the surplus.  Your personalized budget will help you see where you need to put that money.  

    If you have a deficit, then you need to do a thorough review of your spending.  It is time to decide what needs to go, what needs to wait, and where you need to pay off debt get get in the surplus.  This process can be painful because it will require lifestyle changes; however, once you get on the other side you can really enjoy what you have: financial freedom.

    Your budge needs to account for variable expenses.  There are some expenses that vary every month.  You need to be prepared for that.  Irregular monthly expenses can be utilities and food.  Then there are the expenses that don't occur every month like auto and house maintenance, medical expenses, clothing, and vacations.  Look at what you have spend in these areas over the last 12 months.  Add them up and then divide by 12.  That will give you a good estimate for your monthly budget. 

    Just like all monthly expenses are not predictable, not all income is predictable.  That does not change the fact that you need to budget.  It just makes it a little trickier.  You have to be more flexible and adjust appropriately each month.  You need to plan ahead on your spending.  

    Just like with the variable expenses, add up what you made in the last year and divide by 12.  It will give you an average of what you have to work with each month.  It is important to put the money in savings on the months that you make over the budgeted income amount.  That way you have the money on the short months.  

Proverbs 11:1-25, 22:7-9, Matthew 6:24, Luke 16:10-12, & Colossians 3:22-25