Everyone Needs a Budget
by: Fred Mundie
A budget is nothing more than a spending plan – you plan to spend your money on paper BEFORE the month begins. This sounds simple, but many are challenged by the process. You will be hard pressed to find true financial freedom without committing to preparing a budget each month before the month begins. The Bible tells us, "But let all things be done properly and in an orderly manner." 1 Corinthians 14:40
So what is the proper and orderly way to start? First, you need to divide your purchases and expenses into needs, wants and desires. Needs are the things we need to provide basic provisions for our family, such as food, shelter and clothing. Wants often involve choices within needs– steak or hamburger, for instance. Part of being a good steward is properly distinguishing between a need and a want. Lastly, desires are the more extravagant purchases we sometimes seek, such as vacation homes, luxury vehicles, etc.
Before you decide how to divide your income among the above, you must first give your tithe – 10% of your gross income to your local church. Next, subtract your needs that will provide for you and your family. If there is any money left, you pay off debt before you consider wants or desires.
It will take discipline to create a budget each and every month, but it will get easier over time. You will also need self-control to live by the budget, but the freedom you will experience by following it will be worth all the time and effort exerted.
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