Budgeting Your Money

It is absolutely amazing the amount of people who do not have a budget. It is also astounding how many people who do have a budget - but don’t follow it!

Budgets are the premier tool we have to see where our money is at, what it is doing, and where its going. They can motivate us to control our spending, and help us visualize a financial goal.
In short, they give us knowledge and understanding of our finances.

“By wisdom a house is built, and through understanding it is established; through knowledge its rooms are filled with rare and beautiful treasures”. Proverbs 24:3-4

There are many software programs out there that help folks make budgets. Some are so fancy and elaborate that I half expect them to do my laundry and water my plants for me! But if your like me ( a computer buffoon) all you need is a simple notebook and maybe a calculator.

There are many thoughts, ideas, and theories as to what percentages of ones money should be set aside per budgeting category. In the end, it is my belief, that it really depends on each persons particular situation and circumstances that regulates this.

I know that the “60/40” budget is fairly popular. This basically means that 60% of your budget should be your basic needs and essential items like housing expenses, basic food and clothing, bills, taxes, and charitable contributions. The 40% is then broken down in 10% lots for savings, entertainment and the such. At the very least this could be a good way to get started.

Another budget that is very popular was made by Larry Burkett. I really wish that I knew how to do that linking thing to just shoot you to a web page that shows it! But if you google him, I’m sure you will be able to see it for yourself. Anyway, his budget is a lot more detailed. If you continue to read any posts made on this blog ( hope I’m not boring you) you will see that I am a fan of Larry Burkett.

In future posts I hope to show ways to save money and possibly to increase your income.

Until then,