Tag Archives: budgeting

Budgeting 101: Why Saving is So Important

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Saving money is very important.
Next to tithing, saving should be the next most important item in your budget.
Also, like tithing, your goal should be to save 10% of your income.
It must be at the top. If savings is at the bottom of your budget then all it gets, or all you get, is what’s leftover, if anything at all.

Why is saving so important?

Savings is like preventative care.
Savings is Murphy repellant.
Saving prepares you for emergencies.
Savings keeps you from having to use credit cards.
Saving gives you freedom.
Saving keeps you out of debt or from from getting further in debt.
Saving gives you peace of mind.

Saving must be a priority. After giving back to God, pay yourself first.
10% of your income adds up quickly. You will be surprised how much money you can have if you will just discipline yourself to save.

Proverbs 21:15. “The plans of the diligent lead surely to plenty, but those of everyone who is hasty, surely to poverty.”

The surest way to save is to make it automatic.
Have it auto drafted into your savings account from each check.
If it’s taken out before you can even get your hands on it, like taxes, then it’s easier to get used to not having that money to spend.

You can do it. You can be a saver!
Take action and start today. Do it now!


Budgeting 101: Why Tithing is so Important

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When creating and living off of a written budget, tithing to the church should be the first item on the list.

Why?

When I was younger I did it because that is what my parents and the church taught me was the right thing to do.

As I have gotten older I have learned more and more, on my own, why it is so essential.

Giving away a portion of your income is a testament of your faith and belief in God and his church.   It is a sacrifice.

Since the creation of man God has asked us to sacrifice by giving of the first of our fruits.  Adam and Eve taught Cain and Able how to sacrifice.  This story also taught us the importance of giving of the best that we have and with the right attitude or there could be consequences.

All God asks is that you give 10% back of what he already gave you in the first place.  It takes money to run the church and the purpose of the church is to reach out to the community and help those in need.  To save those that are lost.

God will take care of you when you give.

God has never failed to provide for me or my family and that is because we are first faithful to Him.

He provides in many more ways than simply a good, steady income.

He has kept our family healthy.  He has kept our vehicles running well.  He has taken care of our home and so much more.

Any of these things could instantly cause you to have to pay out a tremendous amount of money if something goes wrong, especially when it comes to your health.

If you do not pay your tithes, God may choose to get that portion from you one way or another, so it is better to give it up front, willingly and happily and be blessed, instead of the other way around.

If you are faithful to God and his church, then he will be faithful to you and take care of you.

Luke 6:38  Give, and it shall be given unto you; good measure, pressed down, and shaken together, and running over, shall men give into your bosom.

Sounds to me like a win-win situation.  Bless others and you will be blessed even more.

You can’t out give God.  Go ahead and test him.  Give him the first of what you receive in tithing to the church and see what happens.

May God bless you.


Budgeting 101: Creating a Budget

Budget

 

Living on a budget is not something everybody does, but it is something that everyone should do.

As Dave Ramsey says, “If you don’t manage your money, your money will manage you”

For those ready to take control of their lives and their money, creating a budget is the first step.

Be intentional about getting started.  Don’t just let each day go by and see if time just happens to tap you on the shoulder and suggest that you sit down and do this.  Schedule a day and time that you can sit down for an hour, then follow these steps.

 

Step 1: Grab a pencil, some paper, a calculator and sit down at the table.

  • Use a pencil because you likely will need to so some erasing.
  • Lined paper would be helpful, but not necessary
  • Don’t sit on the couch in front of the TV.  Sit at the dinner table where you can focus.

 

Step 2: At the top, write down how much you make in a month.

  • This part can be tricky if your income is variable. There are multiple ways to budget with variable income.  For now pick an average of what you expect to make each month.

 

Step 3: Start making a list different places that your money goes each month.

  • Don’t worry about the amount spent on each item yet.  Just list everything that you can think of that your money goes to.
  • Start with the items that are essential to life first.

Examples of essential items

  • Tithing
  • Savings
  • Mortgage or Rent
  • Power or Electric
  • Food or Grocery (not dining)
  • Gas
  • Water
  • Gas
  • Phone/Internet/Cable
  • Auto insurance
  • Home insurance
  • Life insurance

Examples of non-essential items

  • School misc
  • Kids activities
  • Birthdays
  • Recreation
  • Dining
  • Kids allowance or commission
  • Clothes
  • Home maintenance
  • Music lesson
  • Dental
  • Eyecare
  • Medical
  • Retirement
  • Vacation
  • Christmas
  • etc…

The the non-essentials will look different for everyone, but it is is important to get everything that you can think of listed.

 

Step 4: Write a dollar amount beside each and every item

Some you will know and some you might have to estimate.

 

Step 5: Pick up the calculator and punch in the income number at the top of the page, then start subtracting each item from that number.

Most of us will run out of money before we get to the bottom of the list.

 

Step 6: Balance your budget by adjusting the numbers or items until all of the money is accounted for and your final number is 0.

 

In future posts I hope to go into more detail about why I listed things like vacations, birthdays and Christmas in the monthly item list.

I would also like to explain further why I think that tithing and saving are essential to life budget items.

For now…Have fun creating your budget.  It will feel good to take control of your money.


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