Back to Basics Finances Day 2

Budgeting Part 1

Today we are going to talk about my least favorite part of money: budgeting.  Why do I think of this as my least favorite?  I like to buy stuff.  All kinds of stuff.  Remember that song material girl? That  was me not so long ago.  Ok, I admit it, I still am, but God is working with me on that.  I also want to let you all know, I am in no way a financial person, just letting you all know what I have learned through the years and works for my family and I .  So, let’s take a leap of faith and dive right into budgeting.

Ecclesiastes 7:12 “Wisdom is a shelter as money is a shelter, but the advantage of knowledge is this: Wisdom preserves those who have it.”

 Ha!  Fooled you!  Before we can talk about a budget, we have to know where we are spending our money.  Why is this important?  If you don’t know where the money is going, how can you know what or how to budget?  This is the time for complete honesty not only for yourself, but your family as well.  The first thing we need to do is find out how much money is coming in.  Unlike looking at the gross amount for tithing, now we need to look only at the net after all that fun stuff like taxes, social security, etc.  Now, let’s get those bills ready to look at, and I mean really look at, not glance at, grimace and move on.  We all have similar bills each month such as:

  • House payment or rent
  • Electric
  • Gas/fuel oil/coal/wood (however you heat your home)
  • Phone
  • Trash
  • Water/sewer
  • Homeowners or renters insurance
  • Food

Ok, now let’s look at the other bills you may have:

  • Car payment/insurance
  • Gas for car
  • Maintenance on car
  • School supplies/fees
  • College tuition
  • Medical insurance
  • Medical bills (hospital/doctor/prescriptions/etc)
  • Credit cards
  • Miscellaneous

Now, list any other bills you have that I have not mentioned.  If you have pets, write down the cost of their food, vet bills, and medicines if any.  Make sure that you write down EVERY bill you have with the amount you pay each month, and don’t worry, I am not going to ask you to tell me how much it all comes to. That is strictly between you, your family, and God.  Remember, tithing is not included in your bills.  Next, add it all up and put the total amount at the bottom.  Subtract the bills total from the net income total.  Scary number isn’t it?  Take a deep breath, and relax.  That was one of the hardest things to do wasn’t it?  To be totally honest about the bills you pay each month and what you are bringing in.  The final thing I am going to ask of you today, is to really think about these 2 questions before you answer them.  No judgments here, we are all in the same boat, but like I am so fond of saying we cannot change what we do not acknowledge.  Ok, here we go with the questions:

1.      If your bills are higher than your income why?

2.      Are you willing or able to change that?

Congratulations!  You made it through part one of budgeting!!! Go you!

Created for the Gift of the Home Group by Kirsten Dreiling

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