The B Word

Let's take a closer look at that B word – the budget.  When you hear the word “budget” what comes to mind?  Dictionary.com defines the word budget as “an estimate, often itemized, of expected income and expense for a given period in the future.”  An accounting textbook defines budget as “a comprehensive financial plan setting forth the expected route for achieving the financial and operational goals of an organization.”  John Maxwell defines a budget as “Telling your money where to go instead of wondering where it went.”  We are going to define the word budget as “an itemized plan of how you are going to kick the enemy in the teeth in order to get out of financial bondage and live a God-honoring lifestyle that will not only bring financial freedom but financial peace.”

And let it be known that your money is not the boss of you!  The budget is the boss of your money and you are the boss of the budget.  You budget is a plan for your money, and at the beginning of each month you will establish a plan and give every dollar a name.  Your financial situation will not spin out of control because you have a plan.  Having a plan is half of the battle.   By the way, a written plan, if lived on and agreed to by parties, will remove many of the money fights in your marriage.

Let’s take a few minutes to consider a very simple budget plan.  It is the 10-10-80 budget style and it is quite simple… you give 10%, you save 10% and you live on 80%.  This is definitely a budget style that you can live with.  You have the opportunity to live on 80% of the income you receive.  It’s more than a majority, and is actually quite lavish.  However, if you have debt payments, this budget style may be adjusted to 10-10-10-70…  you give 10%, save 10%, pay down debt with 10% and live on 70%. Of course these are merely guidelines to consider.  You want to work out a plan that best suits your financial situation.  Working with your budget and your financial goals will help determine how you will divide out the remaining 80%.

When you have completed the budget, you will be in one of three groups…

1.       Expenses are greater than income

2.       Income is greater than expenses

3.       Expenses and income equal and you have a $0 balance budget

The final objective is to have a $0 balance budget.  If you are in group 1, then you may want to go back through the budget and consider any reductions that need to be made.  If you are in group 2, look at your budget and determine you want to use the excess for additional giving, savings or debt repayment.  The ultimate goal is that every dollar earned has a place to go.  Not giving every dollar a place to go can result in overspending.

Throughout life, school, and jobs you are presented with challenges.  A challenge is a call-up to how you are going to confront something.  I have a challenge for you.  The challenge is this… with your next paycheck use the 10-10-80 budget plan.    Yes, give a tithe of your income from that check.  Put 10% of your paycheck into savings (which is a good way to work on your emergency savings).  Use the remaining 80% for debt repayment and whatever other expenditures you need to make.  In Malachi 3 God says to test Him in your giving.  Go for it!  Test Him!  Test my words in this.  Take this challenge and give the 10-10-80 plan a try.  I don’t think you’ll regret it.

~Alesha