The #1 Financial Tip: Budgeting

by Vanetta Stephens on June 30, 2015

in Uncategorized

One Very Important Financial Tip

The #1 Financial Tip:  Budgeting

Creating and using a budget doesn’t sound like much fun, does it? A budget is as vital to you reaching your financial goals as a map is in reaching your travel destination.  In reality, a budget is a necessary tool to help you enjoy financial health.  Whether you use a sample budget or just write your own on a sheet of paper, the key is to list everything you spend money on.  Go back through bank statements, credit card bills, check registers, and old receipts to make sure you don’t miss anything.  It would be wise to go back through three months of these records to really get an accurate list.  It’s also very insightful to keep a record of your cash spending.  Even little expenditures can really add up!!  A budget really helps you to see what’s happening in black and white.

Now,  you’re ready to benefit from your hard work!  First, compare your actual spending for the month with your monthly take-home pay.  If you spend more than you make, you will need to immediately cut enough spending to make it balance.  It is very important to reconcile your budget every month. If you’ve over-spent in one category, find a way to reduce another category to balance it.

The best part of using your budget is what comes next!  You can evaluate your spending to see if there are any areas where you can make optional cuts.  Why bother to do that??   Because any dollars that you don’t spend can be leveraged to greatly speed up paying off debt, and then you can quickly build valuable investments.

Proverbs 22:7b, says, “… the borrower is servant to the lender.”  Jesus came to set us free, and not be in bondage to anyone.  When we have no debt, we can choose where we might like our money to go, or to whom we might like to gift it.  Having no debt might enable you to enjoy more time to do what you really enjoy doing.   Your life is more peaceful when you aren’t struggling to make payments!

Having your needs met with money left-over so that you can give to anything for which you have a desire is true prosperity, and freedom.

God is an extravagant giver.  He’s lavished His love on us. His Life is full of abundance.  So, as we’ve freely received, we can freely give.  Generosity is Grace Living!

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