What Is A Budget?

A budget is a plan that tells your money what to do and where to go. A budget is you­r game plan for financial success. We just came out a Super Bowl season; what team do you know that made it to the Super Bowl without having a detailed game plan? They didn’t just get up, wing it and say, “we’ll try this, and we might make it to the Super Bowl.” These team­­­­s have been training all season. Some players have been training for their entire NFL career just to get to that one moment.

You may be thinking, “that’s silly! What football team makes it to the Super Bowl by winging it?!”  You know what? I agree with you. They had a plan, if teams need a plan to get to a championship, why don’t you think you need a game plan to reach your financial goals? My goal here is to make you uncomfortable so that you can make necessary changes. This is about your future, your family, and ultimately your legacy. How are you stewarding the financial resources that God has given you? (Matthew 25:13-40)

What’s In A Budget?

Let’s get into the nitty gritty of budgeting.  Budgeting has three major categories: income, expenses, and the balance. Let’s define income as any amount of money that is coming in. Income can come in the form of wages from a job or business, alimony, or through cash gifts, for example.

An expense is anything that you have to pay out of your income. Examples of expenses are bills that occur on a regular basis such as rent, utilities and internet. Expenses also include groceries, money for laundry, charitable giving, and irregular bills like insurance payments.  

Your balance is what you have left once you have subtracted all your expenses from your income. I prefer the to do a zero- based budget which I learned about from listening to Dave Ramsey.  Zero-based budgeting allocates every cent, penny, and dollar to a budget category. A zero-based budget does not mean that you have no money left. I repeat a zero-based budget does not mean that you have no money left. It simply means that you have allocated all your funds into various categories and you have correctly completed your budget.

How Do You Set Up Budget Categories?

Your budget categories really should include all of your expenses. It should include basic categories like rent/mortgage, saving, laundry, and utilities. It should also include savings because let’s be honest if we don’t prioritize it, we probably won’t save money. It should also include charitable giving, and subscriptions. In other words, if you spend it, it should be in the budget. No two people’s budget will look exactly the same. People have different categories and our expenses may fluctuate depending on when bills are due. 

A Budget Will Only Work If You Stick To It

Before moving into my apartment in 2018: I had an option of applying for a different apartment that provided me with a bigger living space. This additional living space was an L -shaped alcove studio. It included stainless steel appliances including a dishwasher and would cause me to go over my budget by about $400 dollars.  I kid you not when my realtor showed me the more expensive, spacious and attractive apartment, I told her that, “I have to consult my future budget.” The Bible says, “the blessings of the Lord it maketh rich, and he addeth no sorrow to it” (Proverbs 10:22). I knew I couldn’t afford that place; that $1,400 price tag didn’t include utilities! I concluded that living in that apartment would make me sorrowful because it would be a financial strain and therefore wasn’t God’s best for me.

Needless to say, I didn’t take the more expensive apartment. I was able to secure an apartment at my ideal price, in a prime location with stores, pharmacies, restaurants, a train station, and a post office within walking distance. Don’t settle for less than God’s best!

I have avoided plenty of financial mistakes by adhering and sticking to my budget. Let budgeting become a way of life for you. and setting out to do the things that I said I would do. Anyone can do a budget, no matter what your income level is. If you have any questions about budgeting leave them in the comments below. Happy budgeting!!!

Gelayne