Manage Your Money God’s Way - How to Create a Budget and Leaky Budgets

August 27, 2016

First Half – How to create a Budget

A Budget is merely a way to tell your money where to go. Just like everyone has a diet because everyone eats, everyone has a budget, because everyone spends money.  Your budget may be dysfunctional but you do have one.

Creating a functional budget lets you monitor and manage your spending. It’s a roadmap which gives you control, and reduces stress.

Track your spending and income for 30-60 days and categorize where you spent money.  Use paper or an excel spreadsheet to organize the information, which is the start of your budget. The Compass Catholic website has a spreadsheet for you to print and use.  Look at the spending, and compare it to your income.  If you have a deficit, you need to make more or spend less.  If you have a surplus, start saving!

Check out our blog from 8/22/2016 for 10 steps on how to create a budget that actually works.

 

Second Half – A Leaky Budget

Leak” is defined as something escaping through a hole.  So a budget leak means you may be spending money on the same things over and over again without even thinking about how or why you are buying them.

It could also be increased costs on items you buy regularly, but you haven’t paid attention to the escalating cost. Maybe you are buying name brand products but haven’t tried a generic brand which could be just as good (or maybe better). Leaks are caused by everything from add-ons in the grocery line to bank fees, expensive ways to spend free time; to credit card fees and interest.

Plugging your budget leaks is part of being a good steward. Luke 16:11 tells us “If you have not been faithful in the use of worldly wealth, who will entrust you with true riches?” 

Plugging those budget leaks helps you be faithful in using your worldly wealth.

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