Managing Money God’s Way

I am writing today to start what will probably be a 3 part series on budgeting.  I was inspired to write this series by one of the comments I received the other day from JoAnn.  She writes “Can you teach an old dog new tricks? I am retiring soon – will be 65 in a few months – have never in my life done a budget. I’m not sure I even know how.  I will be living on 30% less income. I would like to see on this page, how to make a budget.”  So today I start out with what I am calling “First Steps”.

Finances are one of the most difficult challenges that many of us face during our lives.  It is no surprise (or maybe I should say it SHOULDN’T be a surprise) that the challenges double when we get married.  There is no one way to create a budget and there is no definite key to financial success.  The best thing that we can do is be good stewards over what we have – what ever that means for each of us.

1. Keep up with what you are spending.  It doesn’t matter how much money you have you need a record of what you are spending.  Write down every thing that you spend each month and then look at ways you can improve on that spending or make cuts.
2. Pray over your finances.  This is not about asking for more but about asking for guidance over each penny that you spend. Talking to God about how you are utilizing your talents (money) will help you stay focused on doing the best with what you have.
3. Give freely.  It really is true that you can’t out give God.  When you talk to Him about your finances see what He leads you to give to others.  I’ve given away ear rings, dishes, food, time, and plants.  Tithing is important, but giving freely and joyfully of all that we are stewards over is just as important.

Getting your finances in order does not happen over night.  You have to be willing to change, mold and tweak your spending and income so that you can the financial challenges that are facing your life.

Not everyone makes a salary.  Many people live paycheck to paycheck and week to week.  It can be difficult trying to set up a budget when the money is coming in by the week and going out by the month.  Here are a few tips.

• Write down a list of all the payments that you make and the date that each payment is due.

• Put the payments together in equal (or close to it) amounts.

1. Car payment ($450), credit card ($75) and water bill ($75)
2. Mortgage ($650)
3. Electric ($250), Cable ($100), Phones ($200)

• Be sure that each group is scheduled before the due date of the bills. It is okay if the payments go out before the due date but NEVER pay late.

• Make the payments as soon as you get the paycheck, before anything else comes out. One of the reason people struggle to make monthly payments on weekly paychecks is that it is hard to set aside the money to make those payments. This skips that step.

• Save at least a portion of any amount that is left over.

Creating a budget for a weekly paycheck can be painless if you schedule out your payments in equal allotments so that the money can go where it is needed before it manages to go somewhere else.

Let’s all pitch in and help JoAnn.  What tips do you have for creating a budget?  What have you found that works best?  What spreadsheet or software do you use to help with your budget?